imfo 5 audit & risk indaba fostering better service delivery through governance service (mpac...
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IMFO 5 AUDIT & RISK INDABAFostering better service
delivery through governance service
(MPAC Oversight)Presented by: PR Mnisi
East London ICC
Governance in public sector context:- The way and manner in which
government/municipality is governed and managed by the people who run it.
Introduction
LGTAS: clean, effective, efficient, responsive and accountable LG
Need for Oversight: reviewing and monitoring that each structure within the municipality performs its statutory and delegated functions
Effective oversight and accountability helps ensure that the administration and executive implements programmes and plans in a way consistent with the IDP, budget, municipal policy as well as the Constitution and related legislation
Effective oversight strengthens the municipality and improve service delivery
Effective oversight improves efficiency of municipality and contributes to more focused service delivery
…Intro
Local government must strive within its financial and administrative capacity to: provide democratic & accountable government for local
communities; ensure sustainable provision of services to communities; promote social & economic development; promote safe & healthy environment; and
Encourage the involvement of communities Local government must structure & manage its administration,
budgeting and planning process to give priority to: basic needs of communities; promote the social & economic development ; and participate in provincial & national development
programmes.
Objectives of local government
• S 79 of the Municipal Structures Act, states: – 1)A municipal Council may -
• a)establish one or more committees necessary for the effective and efficient performance of any of its functions or the exercise of any of its powers;
• b)appoint the members of such a committee from among its members; and
• c)dissolve a committee at any time – 2)The municipal council-.
• a)must determine the functions of a committee; • b)may delegate duties and powers to it in terms of section
32 (repealed); • c)must appoint the chairperson;
Legislative framework?
•Why MPAC? – Governance requires separation of powers
between oversight and executive. – Executive and Administration accountable
for the legislated and delegated powers. – Provide Effective ,functional and ongoing
oversight mechanism. – Provide enhanced oversight over the
executive and administration
Establishment of MPACs
Established by council by way of council resolution Section 79 committee Main function is to perform oversight over executive
functionaries as determined by council Council determines its functions and powers
according to the internal structure and operations of the council, in order to enhance the performance of the municipality
Meetings of MPAC to be open to the public MPAC reports directly to the municipal council,
Chairperson liaise with Speaker for inclusion of reports in council agendas
Establishment cont…
Service Delivery IDP,MTREF Budget Service Delivery and Budget Implementation Plan
(SDBIP) Individual Performance Agreements
Systems to report performance In-year financial reports (s.71 reports),Quarterly
performance reports Annual Financial Statements, Annual Reports
Other reports to council Ward based reports, Other public communications Municipal websites
Oversight tools
• Undertaking oversight visits in order to verify reported deliverables against actual work on the ground against the set targets.
• Examine the quarterly reports on Unauthorized, irregular, fruitless and wasteful Expenditure
• Scrutinising reports of the City Manager such as Deviation from SCM processes.
• Oversight report on the Annual report of the City and its entities.
• Reports referred by other Section 79 Committees.• Reports requested from executive based on the findings
when deliberating on the Annual report together with the Auditor General report.
• Reports and Minutes of the Group Audit Committee.
Other tools
MPACs must understand the responsibilities, functions and duties of the following committees and establishments:
Budget and Treasury Steering CommitteeManages budget process on behalf of council.
Internal Audit and Audit CommitteeUndertake the internal regularity audit. Draft quarterly
reports Budget and Treasury Office
Manages the municipality’s finances and provides planning, implementation and reporting on municipal finances
Supply Chain Management (SCM) committeesResponsible to undertake and manage all procedures for the
acquisition of goods and services
Understanding of other governance structures
Responsible Oversight Over
Accountable to
Council Approving policy, IDP and budget
MayorCommunity
Mayor Policy, budgets, outcomes,
Municipal Manager
Council
Municipal Manager
Outputs and implementation
The Administration
Mayor
Senior Managers
Outputs and implementation
Financial Management and Operational Functions
Municipal Manager
Municipal structure
oversight: Internal Oversight over municipal administration is done by
Internal Audit Unit and Audit Committee (sec 165 and 166 of the MFMA)
Executive MPAC, oversight role over “executive” of the
Municipality.
Enhanced oversight
The MPACs’ primary purposes are: To serve as an oversight Committee to determine the
effective institutional functionality of the municipal council and municipality;
To monitor good governance and foster optimal utilisation of the municipalities resources to enhance and sustain service delivery and financial management;
To ensure that the outcomes of its oversight function enable the municipal council and municipality to implement and manage remedial measures so as to realign the good governance requirements;
To undertake its work in an independent and non partisan manner over the executive of the municipal council.
To assist council to hold the executive and municipal entities to account, and to ensure the efficient use of municipal resources
Role of MPAC
Interrogate the following financial aspects dealt with in the MFMA (Cont.)
• submission of the annual report (127)-monitor that it has been submitted alternatively
explanation why not submitted
• oversight report (129)-prepare draft report-consider all representations made to the council-members of public allowed to address the committee
• considers issues raised by the A-G• ensure a fully functional audit committee is
appointed (166)• disciplinary action instituted in terms of the MFMA
MPAC terms of reference
authority to interrogate the documents relating to the under-mentioned matters and to make recommendations to the municipal council: unforeseen and unavoidable expenditure unauthorized, irregular or fruitless and wasteful expenditure SDBIP annual report
authority to consider all presentations made by the community on the annual report and the authority to conduct interviews with members of the community to obtain input on the annual report, as well as the authority to prepare the draft oversight report over the annual report;
authority to instruct any member of the executive, the municipal manager to provide the MPAC with copies of documents to be dealt with by the committee in terms of its terms of reference or to appear before the committee to provide explanations or to provide written explanation by a specified date;
Delegations to MPAC
MPAC is a tool through which better service delivery may be achieved
MPACs is a tool to improve effectiveness of municipality
MPAC to function according to the needs of the municipality
Effective oversight will instill confidence of residents in municipality
Conclusion