lg BUDGET DEVELOPMENT PROCESS -1

Information about lg BUDGET DEVELOPMENT PROCESS -1

Published on July 7, 2014

Author: atwooki

Source: authorstream.com

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BUDGETING PROCESS AND CONCEPT: BUDGETING PROCESS AND CONCEPT Decentralization studies CPA Kandole Patrick 7/7/2014 LG BUDGET PROCESS CPA Kandole Patrick 1 Budgeting in PFM : Budgeting in PFM Financial management is about using other peoples money, 5Es while achieving specific objectives of the owners of the resources A public official plays a stewardship role where utmost good faith is expected at all times A budget is a resource management tool 7/7/2014 LG BUDGET PROCESS CPA Kandole Patrick 2 What is a LG Budget? : What is a LG Budget? A Budget is a detailed annual plan of how an organisation intends to spend its financial resources in line with its objectives and priorities. Identify where you want to go = set objectives and goals ( % accessing water, service standards, quantity outputs,) Map out how you want to get there = a plan of actions, paths, WBS How much it will cost to get there= cost of plans =budget. 7/7/2014 LG BUDGET PROCESS CPA Kandole Patrick 3 Budget concept: TALKING POINTS: Budget concept: TALKING POINTS National Vision 2040 =“A transformed Ugandan society from a peasant to a modern and prosperous country within 30 years” National mission theme =“Accelerating Uganda’s Socioeconomic Transformation” Strategic options and priorities defined- water, energy… Evaluate options and tactics Choose the best application matrix= a DDP NDP links LGs and MDAs Cost the preferred options=budget There a processes that lead to a budget 7/7/2014 LG BUDGET PROCESS CPA Kandole Patrick 4 What a budget is : What a budget is Budgeting is the process of determining the future revenue of a LG for a given period (say one year) and then allocating that revenue between the LG needs and priorities. This process should always go hand in hand with the planning process. 7/7/2014 LG BUDGET PROCESS CPA Kandole Patrick 5 Discussion : Discussion “Budgeting is a waste of useful time and money.” Comment on this statement. 7/7/2014 LG BUDGET PROCESS CPA Kandole Patrick 6 Discussion :Why budget ?: Discussion :Why budget ? Purpose for existence of a Lg, set a mission and development objectives Respond to needs of electorate, or respond to manifesto Are a tool of performance evaluation and control To identify and disclose source of funds. 7/7/2014 LG BUDGET PROCESS CPA Kandole Patrick 7 Do we need a budget?: Do we need a budget? To allocate scarce resources rationally and equitably Budgets are legal requirements. Are a tool of control of funds and activities Communication to public about resources use A public accountability process 7/7/2014 LG BUDGET PROCESS CPA Kandole Patrick 8 Do we need a budget?: Do we need a budget? Develop a performance bench mark An instrument of political and economic policy Linking LGs to national policy direction And....... 7/7/2014 LG BUDGET PROCESS CPA Kandole Patrick 9 Generic Process: Generic Process PowerPoint Presentation: Stage 1: (Jan-Feb) Executive Committee proposes policies And activities Stage 2: (Feb-Mar) Budget conference Held by councils Stage 3: (April) Budget desk cost Identified priorities Stage 4:((May) Executive Committee Review costed priorities Stage 5: (June) Chairperson or designate presents budget to council Stage 6: (June) Standing C’ttees Scrutinises budget & make recommen- dations to council Stage 7: (June) Council debates and Approves budget Stage 8: (June) Chairperson signs the Budget & is published Stage 9: (Continuous) Implementation and Monitoring Stage 10: (Continuous) Budget evaluation done Quarterly against Approved work plans THE LOCAL GOVERNMENT BUDGET CYCLE IN UGANDA 11 LG BUDGET PROCESS CPA Kandole Patrick Budget view : Budget view The politician sees the budget process as "a political event conducted in the political arena for political advantage". The economist views budgeting as a matter of allocating resources in terms of opportunity cost where allocating resources to one consumer takes resources away from another consumer. The role of the economist, is to provide decision makers with the best possible information. 7/7/2014 LG BUDGET PROCESS CPA Kandole Patrick 12 The law: The law The responsibility for planning is under the NPA LG planning authority indicated under sections 35, 36, 37 of LGA following NPA guidelines Prepare a comprehensive and integrated development plan incorporating plans of LLGs and submit to NPA Ss 77, 78.79 LGA budgetary powers including Work plans. It is difficult to obtain funding without work plans. 7/7/2014 LG BUDGET PROCESS CPA Kandole Patrick 13 Tools in budgeting: Tools in budgeting Three important tools that enable integrated Planning and Budgeting NDP Indicative planning figures (IPF) The District Development Plan (DDP): The BFP Work plans The Budget 7/7/2014 LG BUDGET PROCESS CPA Kandole Patrick 14 A successful budget process?: A successful budget process? Top management commitment and support Realistic and achievable outputs, activities and expenditure allocations.. Assignment of authority and responsibility Creation of responsibility centres Consultative and participatory approach to ensure ownership of both the process and the approved budget. 7/7/2014 LG BUDGET PROCESS CPA Kandole Patrick 15 A successful process?: A successful process? A systematic prioritisation based on informed choices. Avoid monopolised and biased prioritisation. Effective communication of policy and outputs Budget education and empowerment Flexibility in implementation 7/7/2014 LG BUDGET PROCESS CPA Kandole Patrick 16 A Successful Budgeting Process: A Successful Budgeting Process Sufficient time for dialogue among stakeholders,(managers, subordinates, colleagues, superiors) Relevant background materials for the budget must be availed to Councillors in time. There should be clear linkages between plans and budgets. Provide possible scenarios and consequences of different choices as a basis for political discussion and decision-making. 7/7/2014 LG BUDGET PROCESS CPA Kandole Patrick 17 LG BUDGET DEVELOPMENT: LG BUDGET DEVELOPMENT 7/7/2014 LG BUDGET PROCESS CPA Kandole Patrick 18 MWISHO ASANTE [email protected]

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