NKANGALA District Municipality Dr JS Moroka Thembisile Emakhazeni Steve Tshwete Emalahleni Victor Khanye “Working together with the people to push back the frontiers of poverty” Access to basic services for all ! IMFO 6 October 2015 AL Stander
Nkangala District Municipality (DC 31) The Nkangala District Municipality (DC 31) 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” Access to basic services for all !
Nkangala District Municipality (DC 31) 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 m. SCOA 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” 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” Access to basic services for all !
Life at a municipality Current year budget implementation Previous year AFS Future MTREF “Working together with the people to push back the frontiers of poverty” Access to basic services for all !
Real life at a municipality “Working together with the people to push back the frontiers of poverty” 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” Access to basic services for all !
Stages of change Lack of knowledge Initial reaction Confusion Exit criteria: realise the change will affect the status quo Knowledge of change, lack of full impact Not sure how it will affect them Show resistance or uninformed optimism Exit 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 business Exit 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 “tryout”, see positive implications for business, commits time and energy, makes formal decision to change Exit criteria: attempts to implement the change “Working together with the people to push back the frontiers of poverty” Access to basic services for all ! 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 change Exit criteria: Initiate continuous improvement
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 m. SCOA 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” Access to basic services for all !
Communication is key!!!!! The m. SCOA 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” Access to basic services for all !
Setting the stage Action Risks Mitigation Motivation to change (buy in from all stakeholders), Resistance to change, Use every opportunity saboteurs, uninterested possible to motivate the bystanders benefits of m. SCOA Be strategic Insufficient funds Low prioritisation of project Include project in IDP and Budget “Working together with the people to push back the frontiers of poverty” Access to basic services for all !
Setting the stage Action Risks Mitigation Organisational reform, Own Slow or non chart (understand it) implementation, no guiding plan, non identification of all possible risks Involvement of a crossfunctional team. Used Dr Kotter model to implement the change, develop an implementation plan with clear actions, allocation of roles and responsibilities, risks and mitigation factors Insufficient understanding of Arrange training sessions m. SCOA regulations as an and request NT to arrange institutional reform and not special training merely a financial reform “Working together with the people to push back the frontiers of poverty” Access to basic services for all !
Setting the stage Action Risks Mitigation Appointment of m. SCOA project leaders Non commitment to drive Selection of a process (it is not a one performance driven team man show) 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” Access to basic services for all !
Making it happen Action Risks Mitigation Ownership of the process Non implementation as it Creating a vision and the is seen as a NT reform motivation to change MOU with system vendor/s Unclear roles and MOU signed by both responsibilities between parties muni and service provider Study the regulations, Non compliance to Start ASAP, be prepared m. SCOA regulations to get your hands dirty 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” Access to basic services for all !
Making it happen Action Risks Mitigation Assessment of system vendor capabilities Non compliance to m. SCOA regulations Conduct regular project steering meetings with vendor and other pilot municipalities Empower internal stakeholders Incorrect application of m. SCOA, non compliance to budget regulations Training sessions on m. SCOA and system changes. m. SCOA project leaders to assist with budget capturing Management of the change process Failure to implement change Keep audit trail Provide regular feedback Involve IA to audit “Working together with the people to push back the frontiers of change process poverty” Access to basic services for all !
Making it happen Action Risks Mitigation Tabling of draft and adoption of final budget on m. SCOA Non compliance to m. SCOA Training sessions on and budget regulations m. SCOA and system Errors in budget capturing changes. m. SCOA project leaders to assist with budget capturing Going live and transacting in m. SCOA System fall over, Down time in operations Capturing of old year transactions on old format, whilst transacting in new format Testing of transactions before going live Easy transformation back to the old system “Working together with the people to push back the frontiers of poverty” Access to basic services for all !
Making it happen Action Risks Mitigation Third party integration (Payroll) Non compliance to m. SCOA, 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” 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” Access to basic services for all !
Making it stick Action Risks Mitigation Adaptable to changes Changes in the versions Adoption of GUID of m. SCOA can be approach made this difficult to implement easier and quicker to respond, Keep the momentum, Resistance to change Celebrate small wins, be Drop in motivation levels 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” 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” Access to basic services for all !
Challenges • Tight timeframes of m. SCOA and other day to day activities • Late appointment of m. SCOA accountant • Current m. SCOA (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” Access to basic services for all !
Challenges • The current MBRR budget and reporting schedules & upload files to NT LG database are not aligned to m. SCOA. 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 m. SCOA 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” Access to basic services for all !
Challenges • Ensuring that all stakeholders will be understanding the new m. SCOA 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” Access to basic services for all !
Advice to Non-Pilot Municipalities • Start today, study the regulations, study the NT project document. • Appoint a dedicated m. SCOA project team • Prepare a m. SCOA 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 m. SCOA “Working together with the people to push back the frontiers of poverty” Access to basic services for all !
Advice to Non-Pilot Municipalities • Make provision in your IDP and budget for m. SCOA 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” 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 m. SCOA 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” Access to basic services for all !
Juggling is not new “Working together with the people to push back the frontiers of poverty” 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” Access to basic services for all !
Decide for yourself “Working together with the people to push back the frontiers of poverty” Access to basic services for all !
PEOPLE m. SCOA ROCKS We have decided to embrace the m. SCOA fully As we will be adjusting our dance moves in m. SCOA next financial year, others will only start the process “Working together with the people to push back the frontiers of poverty” Access to basic services for all !
Enjoy the juggling It was good to hear our people saying things like: “We are m. SCOA champions and I can teach other municipalities” “m. SCOA made us really to apply our minds preparing our budget” 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” Access to basic services for all !
THANK YOU “Working together with the people to push back the frontiers of poverty” Access to basic services for all ! 32
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