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