Menu

CP3

Woman's Month Edition

Woman’s Month Edition: Promises regarding the socially vulnerable

, 0

Women’s Month Edition

To say is one thing, to do another. To say capital expenditure should be directed towards the socially disadvantaged is in line with the fundamental principles of democracy and human rights, its manifestation in space is however sparse. To ensure that expenditure is directed towards socially deprived areas, is one of the biggest challenges that faces decision makers today and often leads to analysis paralysis.

Socio-economic profiling is one of the most important components of developing any plan that affects the strategy and vision of a municipality. The Deprivation Index is one such profiling tool that assist municipalities to prioritise capital expenditure towards the socially disadvantaged and vulnerable portion of the population.

According to the London Poverty Research Centre, Women’s rights activist Tahira Abdullah said “Poverty has a women’s face”. This is reflected in a United Nations’ Human Development Report which noted that 70% of the worlds impoverished are women. As we near the end of Woman’s month, it is useful to reflect on how the targeting of capital expenditure towards the socially vulnerable, will also improve and benefit the lives of countless women worldwide and specifically in our country.

For more information on the CP3 platform and how Novus3 can assist your organization to target social spending through their capital investment strategy, please visit www.novus3.co.za.

Medium- to long term financial planning

Medium- to long term financial planning in the municipal sector is challenging

, 0

“Some SA Cities are on the brink of collapse.” – Minister Nhlanhla Nene (April, 2018).

Novus3 has developed a Budget Impact Simulator (BIS) to provide welcome perspective and assistance in this space.

What will happen to our financial position as a municipality if we approve our current capital budget? Can we afford it? What funding sources will we be using? Should I take up any loans? What should the conditions of our loans be? What exactly is my current financial position in terms of the relevant legislation? What will happen to my cash-flow? These are among the many fundamental questions that our municipal CFOs are faced with. Prudent and responsible decision-making at local government level is a veritable mine-field of challenges.

A reliable analysis of the combined financial impact of the operational and capital budgets is required to enable our Municipal Managers to answer some of these questions. All of this needs to happen in an environment where the goal-posts keeps on moving and the inputs and outputs keep on changing, month-to-month. In order to answer “what-if” scenario questions or perform goal-seeking analysis on a medium-term budget, the Budget Impact Simulator (BIS) module has been developed for our CP3 clients. CP3 is our online capital management system – CP3 stands for “Collaboration, Planning, Prioritisation, Performance.

Utilising a standardised financial model, the BIS empowers our municipal decision-makers to test the effect of budget approval scenarios by adjusting any of the BIS’s “levers”. This scenario testing is used to develop financial strategies, in order to achieve specific financial goals. The typical scenario outcomes from the BIS, are expressed in terms of the following indicators:

· Operating cash flows;

· Net cash flow position;

· Liquidity position;

· Borrowing position;

· Operating budget funding envelope; and

· Capital budget funding envelope.

Get in touch with us or visit our website (www.novus3.co.za) to find out more.

CP3 facilitates 29% of South Africa’s

CP3 facilitates 29% of South Africa’s Local Municipal Capital Budget during 2017/18

0

South Africa approved R213 billion capital expenditure projects across all local municipalities during the 2017/18 Medium Term Expenditure Framework (MTREF). The Novus3 Comprehensive Programme Planning, Prioritisation and Implementation System (CP3) facilitated the planning, prioritisation, budget fitting and reporting of approximately R62 billion (29%) capital budgets during South Africa’s 2017/18 MTREF local municipal budget cycle.

For more information on the capabilities of the CP3 Software-as-a-Service (SaaS) platform and the capital investment advisory services offered by Novus3, please visit www.novus3.co.za

Budget Impact Simulator

Budget Impact Simulator

0

Our Budget Impact Simulator (BIS) is flexing its muscles. The BIS tool is once again providing valuable insight into the financial planning decisions that need to be made by our key CP3 clients. Many South African municipalities are currently under financial duress. The budget impact simulator assists with sustained, updated and informed decision-making in line with legislated compliance requirements.

CP3 facilitates mSCOA compliant

CP3 facilitates mSCOA compliant local municipal capital investment planning

0

mSCOA is the acronym which stands for the Municipal Standard Chart of Accounts which was introduced by National Treasury in 2014, which became mandatory for all local municipalities from 1 July 2017. The primary objective of mSCOA is to achieve an acceptable level of uniformity and quality from the collection of data from the Integrated Development Plan (IDP) process to Annual Reporting.

The key objectives of mSCOA are:

The mSCOA chart consists of seven (7) reporting segments and all local municipal budget items and financial transactional elements must reflect these segments:

The Novus3 CP3 comprehensive program prioritisation and implementation platform is compliant with the most recent version (6.2) of the mSCOA chart and facilitates local municipal capital investment planning, budgeting and data-string reporting in accordance with the mSCOA global unique identifier codes prescribed by National Treasury.

Please visit www.novus3.co.za for more information.