Welcome to IMFO

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Indaba 2014- East London ICC
Sidwell Mofokeng Vice President
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CONSEQUENCS OF POOR PERFORMANCE

• Results of non-service delivery can have a
  detrimental effects...wmv

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Outline

• Where are we at as Mayors in exersing effective
  role?
• Legislative Environment
• Govt Planning Performance Systems
• Performance Management System Cycle
• Monitoring Model
• Reviewing
• Auditing
• Proposed Approach to Monitoring Evaluation
• Challenges
• What needs to be done

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DELEGATION SYSTEM

• Community
• Council
• EXCO/Mayco
• Council Committees Section 79( including MPAC
  and 80
• Audit Committee/ Performance Audit Committee
• Senior Management
• Sub-delegation

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WHERE DOES THE OVERSIGHT ROLE STARTS
1.Integrated Development Plan (IDP) Process
Plan Five Phases (Analysis, Strategies, Projects,
Integration Approval. 2.Annual Budget 3.
Service Delivery Budget Implementation
Plan Corporate Objectives, Baseline, Indicators
(Input/Output/Outcome), Targets 4.Performance
Agreements Performance Plans/Performance
Scorecards 5.Performance Evaluations 6.In-year
Reports and All Reports Quarterly Reports (MFMA
Reg 2009) Quality Certificate Midyear Reports
(MFMA Sec 72) Quality Certificate Annual
Performance Reports (Structures Act)
Auditor-General Report/Opinion Annual Reports
(Section 121) AG Report/Opinion/Oversight
Report3.
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Planning

• Involves the development of an organizational
  strategic plan and the cascading of this plan to
  all structural levels within the organization. (
  Mayor/ Executive Mayor) Set the tone on Top
• Includes the development of individual
  performance plans (key performance areas).The
  planning process also involves the setting of
  measurement frameworks (performance indicators
  and targets).
• Performance Planning ensures that the strategic
  direction of the Municipality more explicitly
  informs and aligns the IDP with all planning
  activities and resource decisions. This is the
  stage where Key Performance Areas and Key
  Performance Indicators are aligned to the IDP and
  national requirements, and targets are set.
• IDP and the Draft budget

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Monitoring

• Involves the development of mechanisms and
  systems to monitor the implementation of plans.
• Includes elements such as reporting frameworks,
  tracking systems (e.g. logging of customer
  complaints) and feedback mechanisms (customer
  surveys).

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Measuring

• Involves measurement against targets that have
  been set( Predetermined objectives) Measurement
  also includes mechanisms such as benchmarking
  (measuring against sector/industry standards)
• It is an on-going process to determine whether
  performance targets have been met, exceeded or
  not met. Projections can also be made during the
  year as to whether the final target and future
  targets will be met. It occurs during key points
  in a process for example, on a quarterly and
  annual basis.

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Evaluation

• Analyses why there is under-performance or what
  the factors were, that allowed good performance
  in a particular area. Where targets have not been
  met, the reasons for this must be examined and
  corrective action recommended.
• Evidence to support the status is also reviewed
  at this stage. An additional component is the
  review of the indicators to determine if they are
  feasible and are measuring the key areas
  appropriately.
• A corporate analysis of performance will be
  undertaken by the Performance Management Unit, to
  examine performance across the municipality in
  terms of all its priorities.

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Reporting

• Entails reporting twice a year to management, the
  performance audit committee, council and the
  public.
• In addition, a quarterly report is also prepared
  and sent to Internal Audit to be audited, prior
  it being sent to council and the performance
  audit committee.

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Review Performance Management Process
General KPIs
Planning process (IDP) that includes Developmen
t Priorities and objectives
Set KPIs
Report
Community Participation
Community Participation
Set Measurable Targets
Monitor Performance
Improve Performance
Review and Measure Performance
Provincial Intervention when necessary
Community Participation
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Presentation Outline1
WHERE DOES THE MAYOR START 2

1. IDP CYCLE
2. IDP Steering Comm ( Management PMT)
3. Stakeholder Performance AC AC
4. Process Plan outline responsibilities of all
   Stakeholders
5. IDP will follow process Public partcicpation
6. Draft budget
7. After Council approval of the IDP the may or
   must of SDBIP with a contract with Council
8. Mayor must ensure that performace contracrt are
   signed
9. Performance Agreement informed by Framework and
   Policy and the ACT
10. SBDIP must be presented to the public however
    this would have been
11. SDBIP is an agreement of Mayor and council

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WHERE DOES THE MAYOR START 4

• Supporting structures to the Executive Mayor are
  supporting
• Management implements and accounts
• PaC/AC advice, review and give assurance (through
  
• internal audit process
• -MMCs and section 80 -Monitor and Evaluate per
• department
• Mayco/ Exco oversight
• Council Approve
• MPAC interrogate as per council mandate
• -

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WHERE DOES THE MAYOR START 5.

• PERFORMANCE Management Staff Regulations
• Performance is driven by section 56 employees the
  role of the mayor
• Constituting the panels
• MM conduct Informal assessments quartely as per
  act and regulations 805
• Formal assessments twice a year
• SBDIP BUDGET adjustments
• Adjust the organisational performance
• Adjust Predetermined objectives
• Panels and the PaC/AC

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WHAT NEED TO BE DONE 1.

• Remedial Action Plan for Predetermined Objectives
• Review and revise performance targets and
  projections in Organisational SDBIP
• Review performance management process
• Review performance measuring instrument
• Review and revise performance management policy
• Develop performance management framework
• Develop user guidelines for performance measuring
  instrument
• Develop framework for credible performance
  evidence.

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WHAT NEED TO BE DONE 2.

• Expedite the current review of the ME System to
  ensure that it generates reliable and timely
  information for decision making, in order to
  improve governments delivery machinery, improves
  policies and accountability
• Strengthen the capacity of the Delegation Systems
  at local government
• PMS/Internal Audit must work together to support
  processes
• Strengthen support of the internal/external audit
  processes
• Support internal/external committees
  (Oversight/Audit Committee to do their work
  diligently
• Strengthen Council Oversight Role
• Capacity building of the MPAC to execute its
  mandate
• Council being decisive in acting of MPAC
  recommendations
• Continuous training and development VERY
  essential PMS evolving all the time

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WHAT NEED TO BE DONE 3.

• Develop a framework of how to address the
  identified gaps and challenges
• Stick to the planning ethos (i.e. IDP Guide
  Packs!)
• Review of Institutional Arrangements (that can
  work best for us (not to loose focus!)
• Align the planning instruments at municipal
  level
• IDP , SDBIP, LGTAs, Outcome Based Approach, NDP
• (Develop aligned SDBIP scorecards for
  implementation with clear KPIs and targets)
• Resuscitate and sustain planning tools (dont
  steer away from what you know best, what works
  best and how to do it better!)
• Develop
• Clear and concise planning frameworks
• Timelines
• Responsibilities
• Strengthen local structures
• District-wide IDP Steering Committee

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WHAT NEED TO BE DONE 4.

• Redefine the assignment responsibilities to
  Council, Mayor, Officials and Municipal Managers
  and Section 57
• For better preparation and readiness
• For improved implementation
• Sustain the performance monitoring and evaluation
  system
• Form should follow function
• Hence clarity on function crucial
• First function and buy-in, then the rest

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ReviewCurrent State of Performance Information
Risk Management
Internal and External Auditing
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Review Performance Management Process
General KPIs
Planning process (IDP) that includes Developmen
t Priorities and objectives
Set KPIs
Report
Community Participation
Community Participation
Set Measurable Targets
Monitor Performance
Improve Performance
Review and Measure Performance
Provincial Intervention when necessary
Community Participation
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ROLE OF ADMINISTRATION AND POLITICAL LEADERSHIP
IN PERFORMANCE MANAGEMENT PROCESS

INTERNAL AUDIT
ACCOUNTING OFFICER AND SENIOR MANAGEMENT
TECHNICAL STEERING COMMITTEE
RISK MANAGEMENT AND ANTI-CORRUPTION
ICT STEERING COMMITTEE
PERFORMANCE AUDIT COMMITTEE
EXECUTIVE MAYOR AND MAYCO
SECTION 80 COMMITTEES
AUDIT COMMITTEE
COUNCIL
MPAC
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Evaluation of the Speaker, Executive Mayor and
Senior Management on the Functionality of
Performance Audit Committee and Audit Committee

• Both committees work was of high quality and
  their output is commendable. A huge amount of
  audit documentation has been dealt with and they
  fulfilled their mandates.
• The overall performance of the Audit and
  Performance Audit Committees were better than
  expected and they have received the full support
  of management.
• It is worth highlighting that the current Audit
  and Performance Audit Committees have added value
  to the Municipality as already, we have observed
  noticeable changes including attitudes of staff
  and management regarding the Internal Audit
  matters. Management has noted that there was a
  positive contribution to the Financial and Risk
  Management matters.

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Evaluation of the Speaker, Executive Mayor and
Senior Management on the Functionality of
Performance Audit Committee and Audit Committee
CRITERIA CRITERIA SCORE SYMBOL
Composition and Quality ? ?
Understanding Business and Risks ? ?
Oversight of Internal and External auditors ? ?
Process and Procedure ? ?
Communication ? ?
Oversight of Internal Controls, Risk Management, Governance, and Financial Reporting ? ?
Leadership of the Chairperson ? ?
Overall Performance ? ?
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CONCLUSION

• Audit Steering Committee meetings convened on
  weekly basis-chaired by MM
• Standing items-OPCA action plans
• Obligatory attendance-Senior Management Team
• Progress report presented to PaC/AC, MayCo
  Council and MPAC.

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The Institute

• A professional body in local government finance
  that was established in 1929
• A Section 21 company, registered as an
  Association Not for Gain
• A SAQA Accredited Professional Body
• A constructive role player in policy formulation
  processes in local government finance and related
  professions

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IMFO

• THANK YOU
• ?