Transcript Document
CAN AUDIT COMMITTEE AND MPAC CONTRIBUTE TO THE CLEAN ADMINISTRATION? – SEAMLESS COMBINED ASSURANCE Institute of Municipal Finance Officers & Related Professions TOPICS TO BE COVERED Basic principles of clean administration Founding mandates and purpose of audit and municipal public accounts committees, How they come together in municipal governance processes Challenges in making them effective Recommendations Institute of Municipal Finance Officers & Related Professions BASIC PRINCIPLES OF CLEAN ADMINISTRATION Duty of Care Duty of Loyalty Duty of Obedience or Compliance Effective Planning and Performance Management Effective Resource Management Accountability and Transparency Ethical and Responsible Behavior Institute of Municipal Finance Officers & Related Professions FOUNDING MANDATES AND PURPOSE Text Text Audit Committee Mandate Text Section 166 of the Municipal Text Finance Management Act, Act No. 56 of 2003 Text Purpose Text Advise the municipal Text council, the political officebearers , the accounting officer and the management staff of the municipality MPAC Section 79 of the Municipal Structures Act No. 117 of 1998 Exercise oversight over the executive functionaries of council and to ensure good governance in the municipality Institute of Municipal Finance Officers & Related Professions FUNCTIONS Functions Text Text Monthly, Text Quarterly Text and mid-year Text reports Text Annual Text Financial Statements Audit Committee Assess municipal performance and report to council MPAC Interrogate and report any matter of concern to council Review and advise on adequacy, reliability and accuracy of financial reporting and information Copies of the financial statements submitted to the A-G must be submitted to the MPAC Institute of Municipal Finance Officers & Related Professions FUNCTIONS Functions Audit Committee Text Text Annual Assist the oversight Text Report Text Committee (MPAC) in the review of the Text annual report Text Text Matters raised by AG Ensure submission of plan and report on implementation of recommendations MPAC Consider the annual report and prepare a draft oversight report to be submitted to the council for purposes of adoption Interrogate plan and make recommendations to the council Institute of Municipal Finance Officers & Related Professions CHALLENGES a) Attitude towards Governance and Compliance with requirements b) Relationship between Audit Committee, Council and Oversight c) Inadequate understanding of the purpose and content of the Annual Report d) Emphasis is more on compliance rather that a value adding governance process/requirement. e) The quality of reports submitted to Council for adoption sometimes is poor Institute of Municipal Finance Officers & Related Professions RECOMMENDATIONS Bring back the relationship in the family Change attitude towards Good Governance Let Council adhere to basic principles of Good Administration Institute of Municipal Finance Officers & Related Professions Thank You! Institute of Municipal Finance Officers & Related Professions