Victor Khanye Dr JS Moroka Emakhazeni Emalahleni Steve Tshwete Thembisile IMFO 6 October 2015 AL...
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Transcript of Victor Khanye Dr JS Moroka Emakhazeni Emalahleni Steve Tshwete Thembisile IMFO 6 October 2015 AL...
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Victor Khanye
Dr JS Moroka
Emakhazeni
Emalahleni
Steve Tshwete
Thembisile
IMFO6 October 2015
AL Stander
NKANGALADistrict Municipality
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Nkangala District Municipality (DC31)
The Nkangala District Municipality (DC31) is one of the three (3) District municipalities in Mpumalanga Province. The headquarters of Nkangala District Municipality is in Middelburg (Steve Tshwete Local Municipality). The District composes of six (6) local municipalities namely; Victor Khanye Local Municipality (MP 311), Emalahleni Local Municipality (MP 312), Steve Tshwete Local Municipality (MP 313), Emakhazeni Local Municipality (MP 314), Thembisile Hani Local Municipality (MP 315) and Dr J S Moroka Local Municipality (MP 316).
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Nkangala District Municipality (DC31)
The boundaries of the District covers a total area of approximately 16,892 square kilometres.
The main economic drivers of the District Municipality are mining, power generation, steel manufacturing, agriculture and tourism.
The municipality obtained unqualified audit opinions since 2002. NDM was selected as a pilot site for the implementation of mSCOA and adopted a strategy to align it with our planning and budget cycle.
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
PRESENTATION OUTLINE(video and graphic sourced from known/unknown sources on the internet)
• Life at a municipality
• DR Kotter: 8-steps for leading change
• Stages to change
• People
• Communication is key
• Setting the stage
• Making it happen
• Making it stick
• Challenges
• Advice to non-pilot municipalities
• Decide for yourself
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Life at a municipality
Previous year AFS
Current year budget implementation
Future MTREF
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Real life at a municipality
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Dr. Kotter: 8-Step Process for Leading Change
We have to work hard to change an organization successfully. If we’re too impatient, and if we expect too many results too soon, our plans for change are more likely to fail.
When we plan carefully and build the proper foundation, implementing change can be much easier, and we’ll improve the chances of success.
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Stages of change
Lack of knowledgeInitial reactionConfusionExit criteria: realise the change will affect the status quo
Knowledge of change, lack of full impactNot sure how it will affect themShow resistance or uninformed optimismExit criteria: describes change and the business rationale after active questioning
Start to understand change,Bargain, displays anger, actively search information/shows denial actively judging how the change will affect the businessExit criteria: speaks positively about the change , participate actively in meetings to discuss the change
Shows signs of buy-in, want to embrace the change, willing to “try-out”, see positive implications for business, commits time and energy, makes formal decision to changeExit criteria: attempts to implement the change
Long term application of change, the change is treated as the norm Implementation is past point of no return, take ownership of change, high energy levels for the changeExit criteria: Initiate continuous improvement
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
PEOPLE
• LG serves the people of SA and this project should assist us in doing that better.
• People can make or break such a project• Buy-in from top levels (Executive Mayor,
councilors and MM)• Involvement of a cross-functional team.• The mSCOA project leaders must be committed,
dedicated and performance driven people• Don’t think that all people experience change the
same
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Communication is key!!!!!
The mSCOA piloting has brought about change in:-municipal processes, -systems, -organizational structure and -job roles.
This change has been an unsettling issue amongst departments and employees at all levels.
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Setting the stage
Action Risks Mitigation
Motivation to change (buy in from all stakeholders),
Resistance to change, saboteurs, uninterested bystanders
Use every opportunity possible to motivate the benefits of mSCOA
Be strategic Insufficient fundsLow prioritisation of project
Include project in IDP and Budget
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Setting the stage
Action Risks Mitigation
Organisational reform, Own chart (understand it)
Slow or non implementation, no guiding plan, non identification of all possible risks
Used Dr Kotter model to implement the change, develop an implementation plan with clear actions, allocation of roles and responsibilities, risks and mitigation factors
Involvement of a cross-functional team.
Insufficient understanding of mSCOA regulations as an institutional reform and not merely a financial reform
Arrange training sessions and request NT to arrange special training
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Setting the stage
Action Risks Mitigation
Appointment of mSCOA project leaders
Non commitment to drive process (it is not a one man show)
Selection of a performance driven team that understands the current chart. Train and empower them to lead the change
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Making it happen
Action Risks Mitigation
Ownership of the process Non implementation as it is seen as a NT reform
Creating a vision and the motivation to change
MOU with system vendor/s
Unclear roles and responsibilities between muni and service provider
MOU signed by both parties
Study the regulations, Start ASAP, be prepared to get your hands dirty
Non compliance to mSCOA regulations
Arrange training for internal staff on the reform and on the system changes
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Making it happenAction Risks Mitigation
Assessment of system vendor capabilities
Non compliance to mSCOA regulations
Conduct regular project steering meetings with vendor and other pilot municipalities
Empower internal stakeholders
Incorrect application of mSCOA, non compliance to budget regulations
Training sessions on mSCOA and system changes.mSCOA project leaders to assist with budget capturing
Management of the change process
Failure to implement change
Keep audit trail Provide regular feedbackInvolve IA to audit change process
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Making it happen
Action Risks Mitigation
Tabling of draft and adoption of final budget on mSCOA
Non compliance to mSCOA and budget regulationsErrors in budget capturing
Training sessions on mSCOA and system changes.mSCOA project leaders to assist with budget capturing
Going live and transacting in mSCOA
System fall over, Down time in operationsCapturing of old year transactions on old format, whilst transacting in new format
Testing of transactions before going liveEasy transformation back to the old system
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Making it happen
Action Risks Mitigation
Third party integration (Payroll)
Non compliance to mSCOA, Delay in salary payments
Testing of integration before going live
First month end and correct in year reporting (sec 71)
System fall over, Down time in operations
Testing of month end procedure before going live
Preparation of quarterly reports
Non compliance to budget regulations
Fall back on manual excel model
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Making it happen
Action Risks Mitigation
Preparation of AFS Non compliance with GRAP, change in classification affects PY comparatives, AG buy in in reform and understanding the challenges faced by municipalities
Automated comparative TB that indicates classification changes, engagement with AG team
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Making it stick
Action Risks Mitigation
Adaptable to changes Changes in the versions of mSCOA can be difficult to implement
Adoption of GUID approach made this easier and quicker to respond,
Keep the momentum, Resistance to changeDrop in motivation levels
Celebrate small wins, be prepared to redo things as we are a pilot site, knowledge sharing, Keep record of challenges and how you over came it, think multi dimensional
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Making it stick
Action Risks Mitigation
Ensure successful implementation
Failure to implement Monitor progress on a regular basis, adjust plan if needed, keep on assessing any risks that can influence your desired project outcome.Get post implementation feedback
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Challenges
• Tight timeframes of mSCOA and other day to day activities
• Late appointment of mSCOA accountant
• Current mSCOA (version 5.3) does not fully cater for District Municipalities (Core and non-core still an issue, e.g. Social Services)
• Prior year adjustments in preparation of 2014/15 AFS
• Need of interim adjustment budget (not in accordance with MBRR)
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Challenges
• The current MBRR budget and reporting schedules & upload files to NT LG database are not aligned to mSCOA. Draft budget was tabled & final budget approved on the old budget formats. Monthly upload submissions and schedules on old format.
• Alignment changes from old GFS to new mSCOA GFS
• Buy in of AG on reform – process to be followed for implementation and auditing of AFS
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Challenges
• Ensuring that all stakeholders will be understanding the new mSCOA formats
• Absence of sufficient control accounts• Detail of some items, e.g. Travel and
subsistence vs absence of detail on items like loans, investments, etc. (hampers automisation of IYM reports and AFS disclosure)
• Machinery of state is SLOW
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Advice to Non-Pilot Municipalities
• Start today, study the regulations, study the NT project document.
• Appoint a dedicated mSCOA project team• Prepare a mSCOA implementation plan and
identify all risks that might affect the success of the project
• Start to align the old chart to the new one• Ensure that existing hardware will be able to
accommodate mSCOA
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Advice to Non-Pilot Municipalities
• Make provision in your IDP and budget for mSCOA implementation
• Monitor progress against the implementation plan, institute corrective actions and adjust the plan with unexpected issues.
• Ensure that you have backup plans or mitigation strategies for all identified risks.
• Most of all be a change agent (change is never easy but it empower you to move forward) – communication is key
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Advice to Non-Pilot Municipalities
• Get buy in from all relevant stakeholders, including political buy in.
• This is not a financial/GL reform it is a business reform – all managers must be involved. The mSCOA changes the way we do business and the way we report on transactions.
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Juggling is not new
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Juggling is a learnt skill (even a zebra can do it)
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
Decide for yourself
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
PEOPLE mSCOA ROCKS
We have decided to embrace the mSCOA fully
As we will be adjusting our dance moves in mSCOA next financial year, others will only
start the process
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all !
It was good to hear our people saying things like:“We are mSCOA champions and I can teach other municipalities” “mSCOA made us really to apply our minds preparing our budget”
Enjoy the juggling
LG are the most important sphere of government – we serve the people
directly
““Working together with the people to push back the frontiers of poverty”Working together with the people to push back the frontiers of poverty”Access to basic services for all !Access to basic services for all ! 32
THANK YOU