Post on 28-Dec-2015
IN YEAR MONITORING & BUDGET PREPARATION
WORKSHOPPREPARED BY BUDGET OFFICE
27- 29 MAY 2014
1
PRESENTATION OUTLINE
Purpose
Introduction
Legislative Framework
Budget Process Cycle
Budget Planning process
Road Map
Conclusion
2
PURPOSE
To provide guidance to sub-programmes on how the budget process will unfold in the current year
To provide guidelines on how the budget for 2015/16 MTEF will be prepared and the roles and responsibilities of all affected parties in the department.
.
INTRODUCTION
Budgets form the plan according to which the different resources available to the department are allocated in order to achieve its goals
Each Directorate or Programme needs to ensure that priorities are funded
Senior staff should understand the budget, how it has been developed and further
implement and monitor progress.
Budget office will co-ordinate and consolidate budget for the department
Budget office provides financial guidance, exercise financial management and control to
ensure the department spends within its mandate and budget
Budget Office will continue assisting Directorates by doing working sessions
.
LEGISLATIVE FRAMEWORK
Public Finance Management Act of 1999( PFMA)- provide direction on the management of state resources
Treasury Regulations - provide details to the management of state funds & resources Division of Revenue Act (DORA)- provide details on the budget laws & appropriations Treasury Circulars – provide guidelines on processes to be followed
BUDGET PROCESS CYCLE ANNUAL DEPARTMENTAL STRATEGIC AND BUDGET PLANNING CYCLE
STRATEGIC PLANNING: POLICY REVIEW AND REPRIORITIZATION (JUNE)
BUDGET GUIDELINE WORKSHOP
( JUNE)
FIRST BUDGET SUBMISSION (AUGUST)
MTEC HEARINGS (SEPTEMBER)
ADJUSTMENTS ESTIMATES
(SEPTEMBER/OCTOBER)
SECOND BUDGET SUBMISSION(NOVEMBER/ DECEMBER)
FINAL SUBMISSION (JANUARY/FEBRUARY)
BUDGET PROCESS REVIEW (MAY)
INTERNAL AND EXTERNAL STAKEHOLDERS INVOLVED DEPARTMENTAL PORTFOLIO COMMITTEE; MEC, BAC,ACCOUNTINGOFFICER, CFO, PROGRAMME MANAGERS, HEADS OF INFRASTRUCTURE, SCM, HR, BUDGET OFFICE, STRATEGIC PLANNING, DISTRICT OFFICES, CBS,SCOPA
MARCH: 1.Prepare Sec. 40(4)(a) Cash
FlowProjections2. Budget Loading.
APRIL: Authority To Spend /Implementation
of plans
BUDGET PLANNING PROCESS
1.Review past performance , in terms of impact, effectiveness and efficiency.
2.Review & identify the resources required to meet the needs of the department in that
particular year.
Personnel Cost ( Compensation of Employees)
Operational Cost ( Good & Services)
Capital Expenditure
Transfers & Subsidies ( Transfers to mun/bursaries/ gratuities)
HOW TO CALCULATE FOR RESOURCES REQUIRED
Costing of Compensation of Employees
Identify the no of people needed for the implementation of plans
Costing of current personnel (considering annual increment as per the guidelines)
Cost for the vacant posts ( replacements)
Review the indicative budget allocation to check adequacy of budget for the implementation of plans.
If funding is not adequate to meet your targets, revise the target to meet the resources available.
HOW TO CALCULATE FOR RESOURCES REQUIRED
Costing of Goods and Services
Identify funds to each performance indicator e.g. number of reports submitted to
Treasury as per PFMA and Treasury Regulations, Practice Notes and Treasury
Circulars
Identify the activities that are to be performed for the achievement of targets
Conduct sessions with Programme regarding the preparation of budget
Identify and cost for all resources needed e.g. venues and facilities ,stationery etc.
Directorates should make use of SCOA list in allocating funds
Budget for Accruals and at least 3% for Ad-hoc
( refer to Costing Sheet)
HOW TO CALCULATE FOR RESOURCES REQUIRED
Costing for Capital Expenditure
Identify the capital assets needs of the department (e.g. Furniture , Machinery & Equipment, Laptops etc.)
Submit the list of all the needs to SCM and DGITO
The SCM /DGITO perform an assessment of the needs, condition and present report to the Governance Committee
Based on recommendation by the committee the SCM or DGITO will implement
Infrastructure assessment must be conducted in order to determine what to be done
Costing for Transfers to municipalities
Costing is based on the assessment of what will be done for the municipalities
Reprioritization to assist the most deprived municipalities is recommended
Previous years performance of municipalities should be considered
CHALLENGES CHALLENGES RECOMMENDATIONSPoor planning by Directorates which result to late submission of information
Adhere to time frames
Shifting of funds in the first quarter • Plan properly to avoid this e.g. Budgeting for accruals
• Follow up on commitments Non Alignment of budget to plans resulting in inability to report
• Ensure that every resource requirement is budgeted for
• Credibility of the cash flow projections• Involvement of Project Managers in crafting the
budgetQuality assurance of information submitted to Budget office
Final budget documents thoroughly checked and signed off by Responsible Managers
ROADMAP FOR 2015/16 FINANCIAL YEAR BUDGETING PROCESS
DRAFT BUDGET PROCESS SCHEDULE - 2014/15 FINANCIAL YEAR
TIMEFRAME
MILESTONESCRITICAL
DATESACTIVITIES
April 2014
Request roll-over inputs from programmes
7-Apr-14 Programmes submit roll-over requests
Submit roll-over Application to PPT 30-Apr-14
June 2014
Issue 2015/16 Budget Preparation Document to Programmes
09 June 2014 Programmes analyze plans against budget
Programmes commence budget costing
Finalization and signing off costed budget
23 - 26 June 2014
Programmes submit a final costed budget and signed off at the venue
July 2014
Request inputs from HRM,HRD ,M&E,Disaster Management, Trad. inst Supp and Strategic Planning
07 - 10 July 2014
Relevant offices submit the following information:- - Personnel Numbers - Information on Training - Infrastructure Plans - Non Financial Information
DRAFT BUDGET PROCESS SCHEDULE - 2014/15 FINANCIAL YEARTIMEFRAME
MILESTONES CRITICAL DATES
ACTIVITIES
September
Request Programme to submit inputs to the Adjustment Estimate process
3 September
2014
Analyze current budget against plan/Identify virements - Submit inputs to Budget Office
Attend Provincial MTEC Hearings 19 - 23 September
2014
All Programme Managers attend MTEC Hearings at Treasury
February 2015
Cash flow template issued to programmes
11 February
2015
Programmes attach timelines to the costed activities
Programmes submits cash flow to budget office
18 February
2015
Programmes submit a final signed annual cash flow projections to budget office
March 2015
Budget loading commences 06 March 2015
Budget loading completed 27 March 2015
Copies of reports circulated to programmes for sign off
24 March 2015
Programmes check loaded budget report and notify budget office of any corrections
April 2015
Implementation of Plans 01 April 2016
Programmes start spending
CONCLUSION
Directorates must clearly derive the implementation strategies and plan properly before the
finalisation of budget to avoid delays in implementing its projects.
Directorates should also work closely with the strategic Planning Unit in ensuring that the
budget is aligned with the strategic documents
All Directorates should prioritize the budget process, budget office is just the coordinator and
the budget belongs to the each directorate
Lets face 2015 MTEF budget with more
determination and commitment
“Coming together is the beginning, Staying together is progress, working together is success’’ Henry Ford
THANK YOU