Date: 20/05/2003
Source: Eastern Cape Provincial Government
Title: Godongwana: Eastern Cape Treasury Prov Budget Vote 2003/2004
EASTERN CAPE PROVINCIAL TREASURY POLICY SPEECH BY THE PROVINCIAL TREASURY, ECONOMIC AFFAIRS, ENVIRONMENT AND TOURISM MEC ENOCH GODONGWANA, 20 May 2003
Mr Speaker
Hon Premier
Members of the Executive Council
Members of the Provincial Legislature
Members of the Public
Officials from departments
Ikwezi Lomso greetings to you all.
1 INTRODUCTION
The policy speech presented to the House here today must be read in conjunction with the budget statement of vote 12 (page 274 to 299) which I tabled on the 6th of March 2003. I further table for consideration of the House the Strategic Plan of the Provincial Treasury which should serve as the point of reference for the Honourable Members.
The details of all the projected activities and performance measures are captured in the Plan and this policy speech is merely highlighting some of the key issues contained therein.
In its strategic plan for this year, Treasury will continue with the theme of the budget speech namely "From stabilisation to decentralisation" . We will sharpen our tools to focus on decentralisation enabling managers to manage and thus control their own financial environment.
Guided by the above principles the overall strategic thrust then is:
* To further devolve financial management in accordance with Public Finance Management Act (PFMA);
* A focused and structured programme to enhance financial management capacity of departments;
* Improvement of internal efficiencies within Provincial Treasury;
* Further stabilisation of provincial finances.
2 GOALS & STRATEGIES FOR 2003/2004
Strategic planning is a cumulative process and in many areas we have build onto previous strategies. A rigorous strategic planning process culminated in a vision adopted in the previous financial year of a "Quality Treasury leading in Service Excellence" with its mission "to provide strategic and technical leader-ship in the allocation and utilisation of resources in order to improve quality of life in the province."
Even though there are many other important reform and renewal projects in the strategic plan, I will place special emphasis on the following:
2.1 Stabilisation & Decentralisation
Stabilisation
The very nature and core function of any efficient treasury is to have stewardship over the financial environment. To centralise financial controls in 1998, was a conscious decision in order to stabilise the financial environment. This resulted in inter alia the following:
* Books of accounts closed and annual financial statements produced;
* Progress with payment of creditors and elimination of provincial debt;
* Containment of huge and reckless overspending;
* Monthly cash-flow forecasting and restoring of liquidity.
Decentralisation
Now that we have stabilised the finances, the challenge is for departments to further improve and to ensure that they don't regress to the previous state of in-solvency.
A key issue is the decentralisation of pre-audit functions. It is our intention to accelerate this process. In the light of the above the departments will face the challenge of complying with the PFMA and pay their creditors within 30 days, be responsible for developing their own write-off policies, approve their own system cheques, approve their own virements within the 8% limit and clear their own suspense accounts.
2.2 Audit performance
Consultants had assessed our audit performance over a three-year period. Clearly there is an improvement in the audit opinion of the Auditor General. The intention is to consolidate the improvement and our target is to have 75% of departments with an unqualified audit opinion.
2.3 Procurement reforms
It is our intention to have a new procurement framework in line with the spirit of the PFMA and international best practices. In this regard the Interim Management Team (IMT) is assisting us.
Meanwhile departmental delegations for procurement will be increased to a maximum of R5 million and the IMT driven projects will be given special consideration and might even go beyond the R5 million threshold.
2.4 Financial Skills Development
In order to address the objective of creating financial capacity in departments, a tender was awarded last year for a 5-year period, to the Public Financial Ser-vices Agency (PFSA) (a consortium of Fort Hare University, in partnership with national and international institutions), to provide a wide range of financial educational and internal consultancy services.
In terms of the project plan, 2002 had mainly been used to set-up operations, to audit financial skills and to deliver the first training programs. PFSA is expected to be fully staffed and operational during 2003/04.
The PFSA initiative will also be used as a mechanism to give support to CFOs to ensure that risks around decentralisation are monitored and managed. The fruits of this major investment and partnership are anticipated to give a significant injection into our goal of becoming a knowledge based province.
2.5 Budget Performance Monitoring
From this year the format for strategic plans are prescribed in line with best practices worldwide and more emphasis is placed on measurable outcomes. The Provincial Treasury established and provided funds for an economic analysis unit and is in the process of recruiting staff. This performance-monitoring unit will research trends, and make recommendations, especially on the social sectors and economic investment issues.
2.6 Municipal Finance
We are positioning ourselves for the eventuality of the Municipal Finance Bill being passed. People have been employed and in conjunction with Local Government pilot sites will be developed in order to gain experience in this environment.
3 CONCLUSION
The transformation of the Provincial Treasury is to be judged, rightly, by the practical difference people see in their everyday lives.
More accessible and responsive arrangements will be developed. As a department we have already embarked on continuous self-assessment in terms of the Ikwezi Lomso Service Excellence programme.
A key part of Batho Pele and the PFMA is a relentless search for increased efficiency and the reduction of wastage. Every Rand wasted in cumbersome, inefficient processes, in delays and duplication, is money which could be invested in improving services to our communities. The aim is to assist the whole Eastern Cape Province to progressively raise standards of service delivery. We have presented to you an integrated strategy, which shows connection amongst programmes and interaction with other departments to infuse efficient and effective financial management.
Colleagues, Comrades and members of the public here is our Strategic Plan. This plan has been thoroughly explored in the department. Now it's your turn to critically assess it and tell us whether we are indeed providing the leadership you expect.
I thank you.
Enoch Godongwana
MEC Provincial Treasury
Source: Eastern Cape Provincial Government (http://www.ecprov.gov.za)
Source: Eastern Cape Provincial Government
Title: Godongwana: Eastern Cape Treasury Prov Budget Vote 2003/2004
EASTERN CAPE PROVINCIAL TREASURY POLICY SPEECH BY THE PROVINCIAL TREASURY, ECONOMIC AFFAIRS, ENVIRONMENT AND TOURISM MEC ENOCH GODONGWANA, 20 May 2003
Mr Speaker
Hon Premier
Members of the Executive Council
Members of the Provincial Legislature
Members of the Public
Officials from departments
Ikwezi Lomso greetings to you all.
1 INTRODUCTION
The policy speech presented to the House here today must be read in conjunction with the budget statement of vote 12 (page 274 to 299) which I tabled on the 6th of March 2003. I further table for consideration of the House the Strategic Plan of the Provincial Treasury which should serve as the point of reference for the Honourable Members.
The details of all the projected activities and performance measures are captured in the Plan and this policy speech is merely highlighting some of the key issues contained therein.
In its strategic plan for this year, Treasury will continue with the theme of the budget speech namely "From stabilisation to decentralisation" . We will sharpen our tools to focus on decentralisation enabling managers to manage and thus control their own financial environment.
Guided by the above principles the overall strategic thrust then is:
* To further devolve financial management in accordance with Public Finance Management Act (PFMA);
* A focused and structured programme to enhance financial management capacity of departments;
* Improvement of internal efficiencies within Provincial Treasury;
* Further stabilisation of provincial finances.
2 GOALS & STRATEGIES FOR 2003/2004
Strategic planning is a cumulative process and in many areas we have build onto previous strategies. A rigorous strategic planning process culminated in a vision adopted in the previous financial year of a "Quality Treasury leading in Service Excellence" with its mission "to provide strategic and technical leader-ship in the allocation and utilisation of resources in order to improve quality of life in the province."
Even though there are many other important reform and renewal projects in the strategic plan, I will place special emphasis on the following:
2.1 Stabilisation & Decentralisation
Stabilisation
The very nature and core function of any efficient treasury is to have stewardship over the financial environment. To centralise financial controls in 1998, was a conscious decision in order to stabilise the financial environment. This resulted in inter alia the following:
* Books of accounts closed and annual financial statements produced;
* Progress with payment of creditors and elimination of provincial debt;
* Containment of huge and reckless overspending;
* Monthly cash-flow forecasting and restoring of liquidity.
Decentralisation
Now that we have stabilised the finances, the challenge is for departments to further improve and to ensure that they don't regress to the previous state of in-solvency.
A key issue is the decentralisation of pre-audit functions. It is our intention to accelerate this process. In the light of the above the departments will face the challenge of complying with the PFMA and pay their creditors within 30 days, be responsible for developing their own write-off policies, approve their own system cheques, approve their own virements within the 8% limit and clear their own suspense accounts.
2.2 Audit performance
Consultants had assessed our audit performance over a three-year period. Clearly there is an improvement in the audit opinion of the Auditor General. The intention is to consolidate the improvement and our target is to have 75% of departments with an unqualified audit opinion.
2.3 Procurement reforms
It is our intention to have a new procurement framework in line with the spirit of the PFMA and international best practices. In this regard the Interim Management Team (IMT) is assisting us.
Meanwhile departmental delegations for procurement will be increased to a maximum of R5 million and the IMT driven projects will be given special consideration and might even go beyond the R5 million threshold.
2.4 Financial Skills Development
In order to address the objective of creating financial capacity in departments, a tender was awarded last year for a 5-year period, to the Public Financial Ser-vices Agency (PFSA) (a consortium of Fort Hare University, in partnership with national and international institutions), to provide a wide range of financial educational and internal consultancy services.
In terms of the project plan, 2002 had mainly been used to set-up operations, to audit financial skills and to deliver the first training programs. PFSA is expected to be fully staffed and operational during 2003/04.
The PFSA initiative will also be used as a mechanism to give support to CFOs to ensure that risks around decentralisation are monitored and managed. The fruits of this major investment and partnership are anticipated to give a significant injection into our goal of becoming a knowledge based province.
2.5 Budget Performance Monitoring
From this year the format for strategic plans are prescribed in line with best practices worldwide and more emphasis is placed on measurable outcomes. The Provincial Treasury established and provided funds for an economic analysis unit and is in the process of recruiting staff. This performance-monitoring unit will research trends, and make recommendations, especially on the social sectors and economic investment issues.
2.6 Municipal Finance
We are positioning ourselves for the eventuality of the Municipal Finance Bill being passed. People have been employed and in conjunction with Local Government pilot sites will be developed in order to gain experience in this environment.
3 CONCLUSION
The transformation of the Provincial Treasury is to be judged, rightly, by the practical difference people see in their everyday lives.
More accessible and responsive arrangements will be developed. As a department we have already embarked on continuous self-assessment in terms of the Ikwezi Lomso Service Excellence programme.
A key part of Batho Pele and the PFMA is a relentless search for increased efficiency and the reduction of wastage. Every Rand wasted in cumbersome, inefficient processes, in delays and duplication, is money which could be invested in improving services to our communities. The aim is to assist the whole Eastern Cape Province to progressively raise standards of service delivery. We have presented to you an integrated strategy, which shows connection amongst programmes and interaction with other departments to infuse efficient and effective financial management.
Colleagues, Comrades and members of the public here is our Strategic Plan. This plan has been thoroughly explored in the department. Now it's your turn to critically assess it and tell us whether we are indeed providing the leadership you expect.
I thank you.
Enoch Godongwana
MEC Provincial Treasury
Source: Eastern Cape Provincial Government (http://www.ecprov.gov.za)
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