Integrated strategic management and financial management processes : a case Study of the Department of Home Affairs (DHA)
Thesis (MPA)--Stellenbosch University, 2019.
ENGLISH SUMMARY : There is a need for integrated strategic management and financial management that can act as vehicles that can deliver value for money. In delivering value for money, it means that citizenry, whom service delivery is targeting, will witness the use of public funds to meet their needs. In the South African public sector, all government departments are required to develop their strategic plans and indicate the budget needed to deliver services that are reflected in these plans. This is an indication that one cannot talk about planning in government and not mention the budget needed to deliver on the plan. The methodology and design of the study followed a purposive sample. The elected officials were interviewed, and their responses were compared to the objectives of the study, the literature reviewed, the case study of the Department of Home Affairs, as well as the policy environment around the integration of strategic management and financial management processes in the public sector. There is a plethora of literature around public sector strategic management and financial management; however, there is sparse literature on these aspects within a South African context. The reviewed literature provided an undisputed view regarding the processes of integrated strategic management and financial management. The findings revealed that the current Department of Home Affairs’ strategic management and financial management processes are not integrated. The challenges that contribute to the lack of integrated strategic management and financial management processes were listed to include, amongst others, poor leadership, working in silos, poor communication and lack of accountability. One of the apparent reasons for the lack of integration between strategic management and financial management, is how strategic planning processes are conducted in the Department of Home Affairs. There is no alignment and severe scrutiny of past trends in order to identify the root cause for challenges experienced. It appears that the way planning is conducted, is only designed to meet the requirements of external central departments, such as the National Treasury and Department of Planning, Monitoring and Evaluation. Developed plans must be budgeted for in order to be executed. In the Department of Home Affairs, it appears that branch heads are not involved in the drawing up of their budgets in order to deliver on their branch plans and ultimately, the overarching plan of the department. The budgeting process requires an inextricable match with the planning process. As already stated, there is a culture of working in silos at the Department of Home Affairs. Budgets are developed in order to meet the timelines and requirements set out by the National Treasury in the annual medium-term expenditure guidelines. It has been found that, at the Department of Home Affairs, there is no determined effort where branch heads develop their plans and indicate the budget required to implement such plans. No process allows branches and provinces to present their proposed plans and budgets required for the next financial year. The recommendations are made on how these challenges can be addressed. The study recommended that there should be a strategic management team that will be responsible for managing the entire Department of Home Affairs’ integrated strategic management processes. Collaboration from within and externally was also recommended as one of the focus areas for the strategic management team. The study concluded by recommending to the strategic management team to follow a thorough strategic management process that includes all the critical elements to ensure that all stages of each process of strategic management are properly followed.
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