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CHAPTER 5 VARIOUS BUDGETARY MODELS - Coggle Diagram

- - - - Limit or ceiling imposed on an agency in the implementation of expenditure. The ceiling will be decided upon by the Treasurer and agency
      - :star: Existing policy
        :star: New policy
        :star: One-off
    - - :star: Agreement between Treasurer and the agency on the desired performance on the part of the
        agency for a particular financial year
        :star: Agency/programs should seek to achieve the targets sets in the programs agreement
    - - :star: Submitted by the agency/programs in the event that targets set in the programs agreement are not achieved
        :star: Reasons should be given as to why targets were not achieved
        :star: Must ask for exemption from having to comply by agreement
    - - 2 Elements
        :star: Provision of greater flexibility/authority to managers throughout an organization and particularly to the lien management level
        :star: Stricter control over aggregate resources whereby supplementary allocations are rarely provided or even considered
      - ADVANTAGES
        
        Central Budget Level
        
        :star: Improve identification of priority expenditure in budget submission
        :star: Eliminate a major cause of the 'gambling' attribute of the budget process by shifting the focus of budget examination from 'cutting expenditure'
        :star: reduce paperwork in the preparation of budget submissions and in the conduct of budget examination
        :star: Allow more time to discuss new policy proposal and its modification
        :star: To provide the Budget Management Division with better information on programs performance
        
        Departmental Headquarters Level
        
        :star: Increase the department’s opportunity to use strategic planning as the basis for budget preparation
        :star: Enable more top-down approach to budgeting
        :star: Enable controlling officer to play a more active role in budgeting and to use it as a management device
        :star: Improve communications of top management priorities to lower level managers and staff
        :star: Allow finance divisions in headquarters to become more involved in matters of programs policy and programs evaluation and less in matters of line-item control
        
        Line-Management Level
        
        :star: To improve motivation among line managers through increasing awareness and understanding of top management priorities through programs agreement
        :star: Greater flexibility in the deployment of resources within aggregate constraints
        :star: To enable budget preparation at the line-management level to take place at the same time as the preparation of work plans, that is two or three months before the beginning of the year and thereby make budgeting at this level a more meaningful exercise
        :star: To enable the financial plans regarding input, output and impact to be used as a management tool
        :star: To enable better integration of decision-making of financial and programs policy
    - - :star: An evaluation of the programs to determine the extent to which targets have been achieved
        :star: A schedule of programs to be evaluated and the issues to be adressed must be included in the Programs Agreement
        :star: Each program should be evaluated once in 5 year
        :star: Criterion of effectiveness - objective orientation
        :star: Criterion of effiency - cost optimization - cost effectiveness
  - - - :star: Outcome base planning
        :star: Budget preparation
        :star: Monitoring and evaluating
        :star: Reporting of results
    - - :star: Input - resources used by programmes to generate output and achieve outcome
        :star: Process - operation or work process where input is ulitlised to produce specific output
        :star: Output - direct product or services produced from activities under programme
        :star: Outcome - effect and result from programme output
        :star: Impact - the final outcome as results from program
    - - :star: Formative
        :star: Summative
    - - Ministry should submit achievement of results and financial performance to MOF through the following reports:
        
        :star: Quarterly and Annual Ministry’s Performance Report
        :star: Quarterly and Annual Projected Cash Flow
        :star: MOIC Report
        :star: Quarterly and Annual Monitoring of OBB Programmes or Activities Report
        :star: Formative Assessment of OBB Programme or Activities Report
        :star: Summative Assessment of OBB Programme or Activities Report
    - - :star: EPU - Prepare polivy and strategic framework for socioeconomic development and proposed national development project through NRF
        :star: MOF - Coordinate, evaluate, approved ministry's budget proposal to be presented in the parliament
        :star: PSD - Look at the improvement of human resource management aspect
        :star: ICU - Coordinate, monitor, and evaluate performance of projects development
        :star: MAMPU - Act as driving force and consultancy expert on organisational and ICT management
        :star: NAD - Perform audit on identified Ministry's programmme from time to time
        :star: Accountant General Department - Continue to develop, manage, control, and improve the goverment accounting system
    - - :star: Sets clear priorities at national, ministry, programme and activity levels
        :star: Integration of DE and OE will provide a holistic view of national priorities
        :star: Provides a framework for eliminating overlapping programmes
        :star:It give better focus on results especially on the outcomes
        :star: Allow for the online budget preparation and submission
        :star: Provide availability for audit trail
    - - :star: The level of acceptance and understanding on OB is still low
        :star: The development of OBB requires commitment from top management of ministries and agencies
        :star: The qualities of information need to be improved in providing better information and to increase opportunity to use strategic planning as basis for budget preparation
        :star: The government need to review the existing structure of programmes to adapt to the OBB
        :star: The structure of OBB requires more work and more commitment from the officer