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Are we there yet – do we know when capital projects will be completed?

2 October 2024
Post 5_ Are we there yet – do we know when capital projects will be completed

With the introduction of the “Strategic and IDP Planning” business process, this update aims to improve the monitoring of capital projects by aligning project planning with the IDP goals and detailing and standardising various key data. With these comprehensive data points, stakeholders can more effectively track and evaluate the progress of capital investments. As part of the requirements from National Treasury’s industry consultations, a shift is being considered for the inclusion of monitoring and evaluation mechanisms in municipalities. A crucial feature of the Strategic and IDP project planning, project prioritisation, project budgeting and project performance monitoring processes as prescribed by National Treasury as part of Circular 80 is the inclusion of detailed timelines and completion dates for each project. By setting clear milestones and deadlines, municipalities ensure that all their projects stay on schedule and within budget.  There are various calls from National Government and from the private sector alike, that every cent needs to be spent optimally and efficiently within our local government space.

Accurate project completion timelines are more than just dates—they’re the cornerstone of effective municipal capital expenditure management.  Understanding and having real-time sight over project timelines and cashflows helps avoid the pitfalls of unspent budgets or the irresponsible fast-tracking of budget expenditures towards the end of the financial year. This readiness is crucial for meeting service delivery commitments and achieving fiscal responsibility.

With Novus3’s CP3 system, municipalities gain an edge in project management. The intuitive interface captures all project needs, including detailed timelines, seamlessly integrating this information from your preceding planning and budgeting processes. CP3’s capability to align with National Treasury’s requirements ensures that municipalities can not only track project progress but also provide evidence-based reports in line with the specific reporting requirements of National Treasury.

Stay ahead of the curve and make informed decisions with accurate timelines and efficient capital project budgeting!

#MunicipalBudgeting #CapitalProjectManagement #CP3 #Novus3 #mSCOA #FinancialManagement #MunicipalReform #MFMA #PublicSectorInnovation #IDP #FundingSources #SpatialPlanning #SpatialReporting #ResponsiveBudgeting #PublicSectorFinance #ServiceDelivery #Accountability #Transparency #SmartPlanning #EffectiveManagement

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Capital investment prioritisation

Novus3’s innovative and celebrated approach to prioritsation, stems from significant multi-disciplinary experience that was gained in-situ at local government level, firmly rooted in an understanding of the built environment. Through the use of the CP3 system, our clients have the ability to appraise large and complex capital demand requirements within minutes, resulting in defendable, evidence based budgets. The results are often challenged and stress tested by politicians during political debates – the process therefore repeatedly have been proven to be beyond reproach and consistently reliable.

IDP Process Plan and change management

Novus3 provides advisory services to our clients, supporting them in setting up the correct structures and mechanisms internally which becomes the basis for sustainable and collaborative planning and implementation. The IDP process plan has a number of inter-related complexities that plays out on a cyclic basis year-on-year. Pre-empting and reacting to upcoming requirements in the IDP process pro-actively, renders the process into a constructive and demonstratable outcomes-based process.

Public sector budget and fiscal impact simulation

The financial management of public sector funding at local government level, even on a small scale, often rivals the complexity encountered at huge, listed, multi-national companies in the private sector.. Local governments have to operate and make smart financial decisions within a complex and exceedingly stressful environment. Compliance with legislation, policy frameworks and accepted accounting practices have to be maintained. Simulating these complexities allows our financial executives to ask “What if?” questions and reliably peer into the future with a long-term understanding of the implications of decisions that are taken in the present.

Spatial Development Frameworks

Novus3’s specialised knowledge and access to bespoke and purpose-made spatial and other analytic tools, provided the company with the opportunity to develop unparalleled experience in the development of Capital Expenditure Frameworks (CEFs) by bringing a practical angle to the formulation of implementation plans. A realistic roadmap is provided on how to realise the objectives developed in the Spatial Development Frameworks of the municipalities where we were involved. In return for the development and submission of these CEFs, these municipalities were awarded with significant additional funding from central government.

Built Environment Performance Plans

As part of the National Treasury City Support Program, Novus3 was regarded as specialist advisors on the built environment value chain – a process embedded in Built Environment Performance Plans (BEPPs). BEPPs were intended to form the bedrock of municipal capital planning and management for larger cities (metros). Novus3’s specialist knowledge played a big role from an advisory and capacity building perspective during the development of a number of BEPPs that were developed for a number of metros.

Infrastructure Capital Investment Plans

Infrastructure investment has to find a balance between addressing historical backlogs and inequalities, maintaining satisfactory prevailing functionality and level of service and strategically investing in unlocking future opportunities and growth whilst acknowledging a plethora regulatory constraints, policies and rules. In the process, certain strategic outcomes are sought which may manifest spatially strategically or environmentally. Our infrastructure capital investment plans provide the strategic guideline and provide the recommendations to find this balance.

Capital Expenditure Frameworks

Novus3 has developed multiple capital expenditure frameworks (CEFs) for multiple municipal clients and are regarded as the sector leaders in this area. These CEFs are financial roadmaps providing clear direction on financial constraints, the most important capital and investment priorities, an understanding of the unique local fundamentals and a sustainable response to these multiplicity of challenges.

Project preparation processes

The efficient planning and execution of projects from the moment of idea conception until the last brick has been laid has been the subject of study from as early as the reign of the Roman Empire. The governance process within the public sector has to play an important role in the journey of project preparation. The under-expenditure of allocated funding regrettably is often the only element in the built-environment that consistently re-occurs. All too often, funding is allocated to projects that simply are not ready to proceed to the next step. Novus3’s CP3 system is used to aid clients in the progressive steps involved in the project preparation journey.