5. PHASE 4: PROJECT REGISTRATION AND EVALUATION
5.1. Budget process alignment
51
52 2. Developing clear developmental outputs ( programmes) that can be monitored against the
indented outcomes.
3. Defining the activities needed in order to achieve the outputs.
4. Evaluating and analysing sector inputs (projects) in the context of the desired outputs as well as technical and financial criteria.
The overall evaluation process is indicated in the diagram below.
The project evaluation and analysis process for the Municipality is an important step in the overall integrated planning process. It cannot be seen in isolation from the other steps in the process and the success of a project evaluation process depends on the success of the entire process.
Although part of the overall IDP/budget process, the focus is more on the spatial reflection of the state of the municipality as well as a developmental and spatial response to evaluate capital and related budgets and projects.
The first point of departure is to identify and agree on a set of principles that will influence the project evaluation and analysis process, including at least the following:
• Simple, transparent and robust. In order to withstand pressures from all role-players it must clearly define roles, be easily understandable, acceptable and have a transparent logic.
• High information accuracy. It must facilitate informed decisions using only the necessary information which must be readily available.
• Flexible. It must be able to changing priorities. It should allow for positive feedback from development outcomes linked to a three-year budget cycle.
• Comprehensive. It needs to cater for differing needs from Services, Municipal Development Map, IDP, Community, Political leadership, etc.
• Balance. It needs to find the appropriate balance and compromise between technical needs to meet service goals and political needs.
• Appropriate decision making. Technical decisions are made by the services departments, political decisions are made by the politicians.
53 It is important that roles and responsibilities are agreed from the start of any process. The roles and responsibilities will generally relate to the following stages in the process (Table 5):
Stage Roles and responsibilities
Project identification, evaluation and registration at a departmental level
• Departments and official need to identify and register projects from departmental plans , sector plans or specialist studies or maintenance programmes
• Communities and councilors will identify needs that are experienced in the areas and settlements
• Strategic planning exercises might result in project of strategic importance
All of the above projects should go through a screening process that will be discussed later and be registered in one format.
Project assessment and evaluation at a municipal level
The responsibility of project assessment and evaluation and a municipal level should be shared between the financial, planning and strategic support departments depending on the institutional arrangements of the municipality. It is however a partnership effort that should include financial and developmental
assessment. This is also the stage where technical prioritization occurs that will result in projects and priorities hat can be submitted for ratification.
Ratification and approval The ratification and approval of a prioritized list of project can be dealt with in a number of ways. An investment committee, for instance, can be created comprising of a senior portfolio politician that can chair the committee and that will submit a proposed list to the mayoral committee.
As was indicated before, project evaluation is about a sound and agreed upon process more that specific criteria, weights and scores. The following are some general steps that can be followed.
Steps Comments
Project Identification Project identification is being conducted at various sources:
• Departments identify project through departmental and sector plans
• Certain strategic projects are identified through strategic planning processes
• Community needs are identified by councillors and community members
Project Registration Project registration is the first “filter” as projects can only be
registered if certain detail is provided. Projects without verified costs will for example not be registered and are viewed as needs and not projects. During project registration community and departmental projects are scanned for duplications and correctness of information.
Budget Implications Verified project information ought to result in a comprehensive
54 budget need. From the registration process it can already be assessed how much of the funds are already committed, what is the back lock etc.
Set-up of prioritisation/evaluation process
It is important to agree on criteria, weights and manner of reporting before the actual prioritization occurs. A relevant technical team ought to be elected.
Prioritisation/Evaluation The actual prioritization exercise should be objective and accurate and completed through a technical process.
Draft prioritised project list A draft prioritization list will result from the prioritization process. This list should be presented to key officials and politicians to assess implications of the municipal strategies and priorities.
Assess implications and choices Implications ob strategic objectives, mandates and timeframes should be assessed. One prioritization scenario might address economic priorities but not the provision of basic infrastructure for example.
Draft list for comments A final draft list ought to be circulated back to departments for their comments. Final one-on-one discussions with departments are concluded and concerns and issues highlighted.
Decision The decision on a draft budget ought to be taken by at least the mayoral committee.