- Corporate Planning Unit
- Budget Office
- Revenue
- Expenditure
- Assets and Insurance
- Cash Management
- Corporate Treasury
- Shared Financial Services
- Stores and Procurement
- Financial Support Services
- Command Centre
- Human Resources
- Administration
10.5 Corporate Planning Unit
i. Functions/outlook
The Corporate Planning Unit (CPU) is a new function of the City of Johannesburg. The unit incorporates the former iGoli 2010 project team and the various local economic development units of the former councils.
Its key tasks are to develop an integrated medium-term City Development Plan (CDP) and a coherent long-term City Development Strategy (CDS). The purpose is to ensure an outcomes-based approach to medium and long-range planning and a strategic allocation of resources to defined priorities. This will promote one of the Mayoral Committee's six strategic priorities, viz. good governance.
The CPU is also responsible for developing and implementing an economic development and tourism strategy (the latter in conjunction with the Communications, Marketing and Tourism Department). This will strengthen the strategic priority of economic development and job creation.
ii. Problem statements
- Johannesburg is characterised by a modern economy, world class services and infrastructure and a skilled workforce, coexisting with sluggish economic growth and high unemployment, huge services backlogs and low levels of human development
- Systematic short, medium and long term plans and strategies are required to address and fulfil the city's constitutional mandate of social and economic development
- Multi-year strategic planning and budgeting and stakeholder consultation need to be integrated into a single, coherent process and product
- Statistics, data, information and knowledge need to be updated, acquired, researched and disseminated in order to enhance the quality of strategic planning, strategy formulation and policy making
- Performance of council functions need to be measured against objectively verifiable targets and indicators, within the framework of an overall performance management system
- Regular monitoring and evaluation of council functions needs to occur to ensure that performance is consistent with the council's overall strategies and priorities
- Economic growth and development and job creation needs to be stimulated through targeted economic development strategies, including tourism.
iii. Outcome
An African world-class city that is linked, integrated and connected with the rest of the continent at the social, economic and cultural levels; and a flagship African world-class city, which is characterised by robust economic growth and development, high levels of human and social development and, services and infrastructure that fulfil the needs of its citizens and the demands of a dynamic local economy
iv. Strategies
- To systematically plan and formulate strategy including a long-term City Development Strategy that facilitates economic growth and addresses basic needs through an inclusive, stakeholder-driven process
- To annually develop a statutory rolling three-year (medium-term) City Development Plan for the city
- To develop a sound knowledge base through the collection, updating and dissemination of statistics, data and information
- To enhance the development of measurable performance targets and indicators as part of the overarching performance management system
- To ensure the embedding and ongoing monitoring and evaluation of the council's strategies and priorities within the organisation's functions
- To ensure ongoing environmental scanning, risk analysis and strategic policy analysis
- To ensure economic growth and development and job creation by establishing a programme for investment promotion and business retention, the development of a tourism strategy, the enhancement of black economic empowerment within the local economy and the promotion and support of entrepreneurship and small, medium and micro enterprises
- To effectively network and collaborate internally and with academic institutions, business, independent consultants and bi- and multi-lateral agencies in pursuance of the unit's overall function.
v. Outputs and targets
| Outputs | Targets |
| City Development Strategy (CDS) | Launch of CDS by September 2001 Extensive stakeholder consultation on CDS between September and November 2001 Adoption of CDS in November 2001 Integration of CDS into the programmes of council functions (in terms of CDP submissions) by February 2002 Review of CDS in June 2002 |
| Local Business Support Centres (LBSCs) | Finalise public-private partnership/corporatisation of Johannesburg LBSCs by August 2001 Annualy monitor LBSCs in terms of the following targets: -250 visits per month -12 workshops/seminars -35 certifications and referrals per month -12 new entrepreneur support group meetings/annum |
| City Development Plan (CDP) | Quarterly monitoring and reporting of outputs and targets of 2001/2002 CDP Evaluate 2001/02 CDP in terms of process and content by July 2001 Workshop and finalise 2002/03 CDP process and substance, particularly the application of performance indicators and targets, by September 2001 Launch 2002/03 CDP process internally by October 2001 Launch 2002/03 CDP public consultation process by January 2002 Finalise CDP compilation and approval by May 2002 Submit CDP to Gauteng Department of Development Planning and Local Government by June 2002 Publicise CDP by June 2002 |
| Strategic Policy Analysis and Formulation | Finalise policy analysis and formulation programme for 2001/02 (such as long term infrastructure investment planning, poverty reduction strategy, informal trade management) by July 2001 Finalise household cluster and social exclusion studies by July 2001 Disseminate results of the household cluster and social exclusion studies to council functions by October 2001 Complete metropolitan needs and customer survey by December 2001 Disseminate results of metropolitan needs and customer survey by January 2002 |
| Job creation, investment and trade promotion and business retention strategy | Finalise economic development strategy by September 2001 Launch catalytic economic development projects by October 2001 Embed economic development objectives and programmes within council functions by January 2002 |
| Tourism Strategy | Finalise tourism strategy by August 2001 In conjunction with Communications, Marketing and Tourism, launch tourism strategy by October 2001 Monitor the implementation of the tourism strategy on a quarterly basis |
| Knowledge Management System (KMS) | Evaluate different knowledge management systems by July 2001 Establish fully-fledged KMS by June 2002 Update the KMS's databases on a weekly basis Ensure the update of KMS intranet and internet sites on a monthly basis Establish KMS resource centre by October 2001 Produce published and/or electronic (list serve and intranet) 'policy briefs' for staff and councillors every two months Host briefing sessions/seminars/symposia on policy issues every two months |
10.6 Budget Office
i. Functions/outlook
The Budget Office is responsible for the facilitation of the distribution of financial resources within the City Council of Johannesburg and to ensure that macro-financial discipline is maintained. Within this function a long-term financial framework and medium-term budget will be developed and the adherence to financial regulations will also be tracked and enforced. It is envisaged that the Medium Term Budget Framework (MTBF) will be aligned to the City Development Plan and that responsible budgeting will ensure a steady improvement in the financial position of the council.
ii. Problem Statements
- The need to aligned budgets with a comprehensive strategy
- Build reserves and funds that are cash backed
- Need for financial discipline within the approved budget
- Need for a budget processes that is transparent and fully consultative
- Budget formats and monitoring reports that enhances accountability
iii. Outcome
MTBF aligned to a City Development Strategy and a steadily improving financial position.
iv. Strategies
- To develop and implement the Medium Term Budgeting Framework through an inclusive, stakeholder-driven process
- To inculcate good budgeting and financial management practices within the national budget reforms process
v. Output and targets
| Outputs | Targets |
| An annual medium term budget | Implement new budget module by December 2001 Plan, manage and present a MTBF by June 2002 |
| Financial performance monitoring report | Monthly and quarterly reports |
| Financial regulations awareness campaign | All council functions to be trained by June 2002 |
| Medium Term Financial Framework | Annually estimate of resources, funding and spending levels |
| Capital Projects | Development of a budgeting and monitoring tool |
10.7 Revenue
i. Function/outlook
The function is responsible for the provision of an effective revenue management service for council and its entities, including billing, cash collections, customer liaison and credit control.
ii. Problem statements
- Need to address flaws in the billing databases
- Need to improve service standards and address work culture issues
- Need to improve payment levels
- Need to address the excessively large debtors book
iii. Outcome
Payment for all services provided, collection of all taxes, except where policy specifically permits otherwise
- Improved data quality
- Trained staff and improved staff attitude
- Improved revenue management practices
- Improved payment levels
iv. Strategies
- Document internal procedures
- Staff development
- Fill management vacancies
- Clean-up billing database (`Diamond Project'), and control data input standards
- Manage arrear debtors
- Anti-corruption initiatives
v. Outputs and targets
| Outputs | Targets |
| Diamond project | Improve the accuracy of the billing system |
| Improved customer liaison | 80% customer satisfaction rate |
| Credit control procedure and decrease debtors arrears | Target: R1.5b |
| Payment levels | 93% average |
10.8 Expenditure
10.8.1 Assets and Insurance
i. Function/outlook
Responsibilities of this function include the management and control of the full spectrum of assets and insurance for the Unicity, the Utilities and the Agencies.
ii. Problem statements
- Inadequate identification of the physical assets and the incomplete registers of fixed assets and moveable assets
- Ensure the integration of assets to the source of finance
- Ensure proper physical risk management and loss control associated with council assets
- Ensure that accurate asset information is available in relation to insurance costs
- Implement new legislation requirements (GAMAP) and the Auditor General's requirements.
iii. Outcome
Improvement in asset and physical risk management and in terms of Auditor General's requirements.
iv. Outputs and targets
| Outputs | Targets |
| Implementation of an asset management policy | Complete record of existing assets
|
| Implementation of a risk management policy/process | Implementation of an integrated claims management system by June 2002 Implementation of a loss control and prevention policy by June 2002 Implementation of an integrated COID management system by June 2002 |
| Capital Projects | New Financial Asset System to integrate Loans System and Venus Financial System New Risk Management System |
10.8.2 Cash Management
i. Functions/outlook
The Cash Management Function is responsible for the preparation of cash-flow projections, investment of surplus cash, raising of external loans, loan administration and managing the Treasury bank account.
ii. Problem statements
- Currently the council operates several bank accounts
- External loans are required to finance capital projects
- Loan registers need to be consolidated.
iii. Outcome
- To appoint one banker for the council
- To raise the necessary funds to finance the capital programme
- To have a consolidated loans register.
iv. Strategies
- To prepare and implement a 10-year funding plan to fund future capital programmes
- To manage cash, liabilities and investments in order to maximise the financial advantage to council
v. Outputs and targets
| Outputs | Targets |
| Effective cash management and investment strategy | Implement new treasury arrangements with the UACs by September 2001 Ensure that uniform cash-flow policies are in place by July 2001 Monitor and report on the performance against the projected cash flow statements on a monthly basis Invest council's surplus cash in terms of the policy framework determined by the Minister of Finance on a daily basis |
| Effective loan administration | Implement a long-term funding plan by September 2001 Consolidate the internal and external loans register by June 2002 Link the internal loans to the assets by June 2002 Account for and report on assets and liabilities transferred from neighbouring councils to the Unicity by June 2002 |
| Consolidated bank account | One Banker by August 2002 |
| Credit rating | Arrange for a credit rating to be conducted annually, or as required |
| Municipal bond | Investigate and report on the possibility to issue a Municipal Bond to secure future capital spending by September 2001 |
10.8.3 Payments and Accounts
i. Function/outlook
The Payments and Accounts section is responsible for the following: salary payments, payment of council's creditors, managing the accounting function, and preparation of annual financial statements.
ii. Problem statement
- Ensure that all council creditors are paid timeously and creditor statement reconciliations are performed in all instances
- Adherence to the deadline set by the Auditor-General in terms of submission of the financial statements
- Implementation of creditor payments by means of electronic transfer.
iii. Outcome
To ensure that the Council adhere to the deadline set by the Auditor-General in terms of submission of the Financial Statements and to ensure the timeous payment of creditors.
iv. Strategy
To present timeously financial accounting information in the format required by council, the Auditor-General and National Treasury. Furthermore, to ensure that all creditor and third party salary payments are made timeously and accurately and in accordance with the approved authority.
v. Outputs and targets
| Outputs | Targets |
| Effective payment of council creditors | June 2002: 100% operational Quarterly progress reports |
| Financial statements | Meet Auditor-General deadlines for June 2002 close-off Implementation of GAMAP principles in terms of statutory requirements - June 2004 |
| Electronic creditor payment system | Capture banking details from suppliers/creditors 50% of all payments made electronically by June 2002 100% of all payments made electronically by June 2003 |
10.8.4 Shared Financial Services
i. Functions/outlook
The Shared Financial Services Unit is in the process of being established. It will be an accounting function focusing on the provision of financial services and advice to specific internal clients. The Shared Financial Services unit will be responsible for providing a comprehensive financial service to certain core functions and until such time as sufficient capacity and expertise exists, to the regions as well.
ii. Outcome
Systems, policies and procedures that ensure that spending happens in a financially sound and controlled manner.
iii. Strategy
Provide a comprehensive financial service to designated council departments and regions that do not have their own financial support services.
iv. Outputs and targets
| Outputs | Targets |
| Client activities in terms of approved policies and procedures | Ensure that deadlines prescribed by the Auditor General for the financial year end are adhered to
Meet the monthly cycles for general ledger maintenance Maintain sound financial records in accordance with the financial regulations and relevant legislation Comply effectively with uniform policies cross boundary issues and new legislation ie incorporation of Midrand budgets into finance, audit etc and Municipal Systems Act and GAMAP |
| Financial approval and advice in respect of the core service and regional clients | Advise clients of any major deviations in expenditure and income by October 2001 Comply effectively with uniform policies cross boundary issues and new legislation ie incorporation of Midrand budgets into finance, audit etc and Municipal Systems Act and GAMAP Six monthly progress report |
10.8.5 Stores and Procurement
i. Functions/outlook
The purpose of this function is to provide the City of Johannesburg with a comprehensive and effective stores and procurement operation best serving the needs of council, council entities, and community at large. Responsibilities include warehousing, procurement and compliance. The centralisation of the stores and procurement function from five independent operations into a unitary function within the Unicity was recently completed.
ii. Problem statements
The existing procurement and warehousing operations have a number of inherent problems and shortcoming that inhibit the effectiveness of an efficient stores and procurement operation for the City of Johannesburg.
iii. Outcome
Systems, policies and procedures that ensure that Council spending happens in a financially sound and controlled manner, that Council procurement policy is effectively implemented, and that inventory operations are most suitable to the service delivery needs of the city.
iv. Strategy
To enable on an operational strategy that will provide a sustained, effective and efficient warehousing and procurement operation.
v. Outputs and targets
| Outputs | Targets |
| Rationalisation of store facilities | Completed December 2001 Reduce stock levels by 25% Quaterly reports |
| Electronic procurement system | Operational by July 2002
|
| Tender documentation standardisation | Tender documentation standardised by June 2002 |
| Midrand/Modderfontein stores integrated | Complete September 2002 |
| Tender/spot purchasing advice centres | 50% of people's centres supplied with terminals for tender/spot purchasing information |
| Capital Projects | Fire prevention measures at Main Reef Road Store Intruder detection system at Smit Street Store Upgrade warehousing facilities at Smit Street Store New Fencing at Zondi Store |
10.9 Financial Support Services
10.9.1 Command Centre
i. Functions/outlook
The main functions of the Command Centre are to manage the data administration and helpdesks for Revenue and Expenditure. The Command Centre co-ordinates the hardware needs for Finance, as well as network and IT contract management. Its responsibilities thus include the control of financial information systems in order to ensure the security and integrity of those systems, and to ensure that financial information can be collected and presented in the formats required.
ii. Problem statements
- Need to consolidate revenue databases into one
- Need for a tool to extract management information from the financial system
- Need to enhance controls with the cash updates.
iii. Outcome
A fully developed management tool to allow management to extract management information from the financial systems on a regular basis.
iv. Strategies
- Focus on the implementation of a consolidated revenue database
- Incorporate cross boundary system issues with neighbouring councils into the unicity chart of accounts
- Development and incorporate the new GAMAP statements into the current chart of accounts.
v. Outputs and targets
| Outputs | Targets |
| Consolidated revenue database | Fully integrated system by June 2002 |
| Financial system | GAMAP statements incorporated into current chart of accounts as determined by the Department of Finance |
| Capital Projects | Implementation of a Business Intelligence System (management tool to allow the extraction of management information from the current system on a regular basis) |
10.9.2 Human Resources
i. Functions/outlook
The function is responsible for the provision of a comprehensive Human Resources service in Corporate Finance and the development and implementation of a comprehensive finance quality management (FQM) system.
ii. Problem statement
- Fragmented approach towards financial management
- Lack of integrated objective setting on all levels
- Lack of structure to manage performance
- Inability or competence of Finance staff to meet the requirements and expectations of Finance Strategies
- Limited capacity to bridge the gap between current performance levels and expected performance levels
- Lack of job profiles indicating performance levels and outcomes
- Lack of management to deal with positive/negative behaviour
iii. Outcome
The major focus area is to
- continue the required day-to-day Human Resources operations
- develop and implement human resources functions that have been lacking such as performance management
- integrate all human resources functions and business processes to enhance performance.
iv. Strategies
- Develop and implement FQM
- Ensure a comprehensive human resources service to Corporate Finance.
v. Outputs and targets
| Outputs | Targets |
| Finance Quality Management System | FQM implmentation framework by June 2002 Implementation of each module according to project plan ieFinance strategy Finance functional analysis Financial Performance System Performance management System Manpower Development Plan Job Profiling System |
10.9.3 Administration
i. Functions/outlook
The Finance Administration section will provide an effective and efficient support function to all the divisions of the Finance Department. The support supplied by this section can be divided into the following categories:
- Facilities and administration support
- Finance committee services
- Record keeping and archiving
- Correspondence
ii. Outcome
- A functional record keeping and archiving system
- An operational finance committee services section
iii. Strategy
To ensure that all sub-functions of finance receives adequate administrative support to ensure that they can operate effectively and in doing so contribute efforts to ensure that Finance meets its goals.
iv. Outputs and targets
| Outputs | Targets |
| Effective materials management and stock/asset control | System in place by July 2001 and asset/stock registers 100% complete by June 2002 |
| Lease agreements for rented accommodation of Finance staff | Finalised by August 2001 |
| Operational record keeping and archive system | Fully operational and integrated by June 2002 |