NORTH WEST PROVINCIAL LEGISLATURE Legislature Building Dr James Moroka Drive Private Bag X20I8 MMABATHO 2735 PORTFOLIO COMMITTEE ON FINANCE REPORT ON PRESENTATION BY DEPARTMENT OF FINANCE ON THEIR STRATEGIC PLAN - 2 0 0 9 / 1 0 . BRIEF OVERVIEW 1. On the 26 t h June 2009, the provincial Department on Finance presented to the Portfolio Committee on Finance their Strategic Plan for 2009/10.
INTRODUCTION The Department of Finance has been allocated R 335 966, OOO for the current financial year 2009/10. OBJECTIVE The objective of the meeting was for the Committee to receive a presentation from the Department of Finance on their 2009/10 Strategic Plan. This had to be done in order for the Committee to be informed, as part of processing the budget for the department to be passed in the Provincial Legislature. PRESENTATION The department highlighted their; • Strategic overview. • External & internal focus. • Overall budget per programme. • Key deliverables per programme. • Challenges.
Strategic Overview This encompasses the main aim of the department being to act as a custodian of public resources. The department provides provincial transversal strategic services through internal audit, information technology, provincial supply chain management, provincial accounting, financial capacity and centralized creditor payments. The department also provides financial management support to public entities and municipalities. External & Internal Focus The department ensures that there is efficient allocation of resources in accordance with national and provincial priorities. The department also implements and monitors the impact of supply chain reforms in the province. In conjunction with departments and institutions of state they strengthen financial management support to departments through norms, standards and training as well as improving external communication with stakeholders. The department offers transversal internal audit services to all departments. The department is in the process of developing a revenue enhancement strategy and coordinates the process of asset and risk management in the province. The department has also managed to reduce the number of qualified audit opinions in provincial departments and municipalities.
With regards to the internal focus the aim of the department is to; • Provide human resource services. • Implement training and transformation initiatives. • Implement the new employee wellness framework and Occupational Health & Safety interventions. • Implement Minimum Information Security Standards (MISS). • Implement a Special Programmes directives. • Improve internal communication. • Implement sound financial management inclusive of risk management within the department. Departmental budget PROGRAMME AMOUNT 1. Administration R61,808 2. Sustainable resource R65,249 3. Asset & liability mgt R16,138 4. Financial governance R94,605 Municipal finance R17,912 5. 6. Information Technology R80,254 TOTAL BUDGET R335,966 4
Key Deliverables per Programme Programme 1 Administration will focus on; • Reviewing departmental strategic plan and organizational structure to align with the requirements of National Treasury and the Department of Public Service & Administration. • Enhancing capacity in critical areas in the department. • Implementing MISS operational programmes. • Develop/amend and monitor human resource policies in line with Labour Legislation. • Monitor staff performance in line with Performance. • Implement leamerships and internships in 2009/10. • Hold departmental communication events. • Strive to obtain unqualified audit opinion. • Improve on asset management • Implement risk management in the department. Programme 2 Sustainable Resource will focus on; • Build capacity and appoint personnel in key areas that support departments. • Continue with performance budgeting techniques. • Rolling out Standard Chartered of Accounts (SCOA) toning. 5
• Implement infrastructure capacity building efforts through the Infrastructure Development Improvement Programme (IDIP) • Addressing the social cluster financial challenges in particular Department of Health & Social Development. • Develop and implement revenue enhancement strategy this in light of increasing the revenue base. • Monitor departmental spending through monthly and quarterly reports. • Monitor compliance on budgeting and expenditure management in public entities. • Establishment of Public Private Partnership (PPP) unit in Provincial Treasury. • Monitor planning and implementation of infrastructure projects and conditional grants. Programme 3 Asset & liability management will focus on; • Repeal the North West Tender Board Act of 2008. • Provide training, support and policy guidance on supply chain management. • Monitor compliance oversight with regards to Supply Chain Management policy and legislation. • Empowerment of suppliers by conducting outreach workshops on accessing government services. • Coordination and management of provincial and national transversal contracts.
• Monitoring and evaluating the impact of Supply Chain in the province in terms of job creation and poverty alleviation. Programme 4 Financial Governance will focus on; • Providing quality accounting services to all departments. • Assisting departments with developing plans that address audit outcomes the aim being to eliminate repetitive audit queries. • Preparation of monthly management accounts of tribal and trust accounts, invest accounts and distribute interest monthly. • Consolidate provincial revenue fund, annual financial statements of departments and public entities. • Providing training and workshops to provide technical financial capacity in departments. • Introducing a liability management system in five pilot departments. • Providing financial technical training to public entities and municipalities. • Speed up supplier payment turnaround time through Electronic Funds Transfer (EFT) • Project manage the Walker system to BAS migration. • Conduct follow up audits on Auditor General's findings and the Provincial Public Accounts Committee's (PPAC) resolutions. • Provide support to the Provincial Audit Committee.
Programme 5 Municipal Finance will focus on; • Assessment of the implementation of new budgeting standards and reporting formats. • Assess financial management capacity and performance levels of municipalities. • Support municipalities to comply with GAMAP/GRAP. • Develop plans to address the audit outcomes to reduce the number of qualified opinions. • Provide support to implement supply chain management policies and guidelines. • Assist municipalities to develop financial policies. • Monitor overall implementation of the Municipal Finance Management Act No.56 of 2003. Programme 6 Information Technology will focus on; • Establishing an Information/Resource Center to assist users with websites, e-mails and customer support. • Establish platform for Walker to BAS implementation. • Local Area networks for departments are upgraded. • Wide Area Network upgrade in line with national priorities. • Roll out Voice Over Internet Protocol (VoIP) • Architecture integration to be established for e- 8
• Departments being assisted with web page development and design. CHALLENGES OF THE DEPARTMENT • Training officials to ensure smooth implementation of the Public Finance Management Act of 1999 (PFMA) and the Municipal Finance Management Act of 2003 (MFMA). • Securing full co-operation of accounting officers in budgeting and effective budgetary controls. • Instituting effective and meaningful monitoring of in-year reporting by departments in accordance with the PFMA and Treasury regulations. • Providing capacity building for the roll out of the MFMA. • Preparing consolidated annual financial statements for all public entities, trading entities and all thirteen departments in preparation of financial statements. • Curbing the irregularities in supply chain management by balancing procurement controls and just in time quality service delivery. • Providing a transversal information technology service to support reporting and other information technology needs. • Providing capacity building and skills development which enhances the provinces'job creation and economic development. 9
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