Transcript IMFO DRAFT MOI

IMFO 5 AUDIT & RISK INDABA
Fostering better service delivery
through governance service
(MPAC Oversight)
Presented by: PR Mnisi
East London ICC
Introduction
 Governance in public sector context:
- The way and manner in which
government/municipality is governed and managed
by the people who run it.
…Intro
 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
Objectives of local government
 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.
Legislative framework?
• 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(repealed);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;
Establishment of MPACs
• 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 cont…
 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
Oversight tools
 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
Other 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.
Understanding of other
governance structures
MPACs must understand the responsibilities, functions and duties of the
following committees and establishments:
 Budget and Treasury Steering Committee
Manages budget process on behalf of council.
 Internal Audit and Audit Committee
Undertake 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) committees
Responsible to undertake and manage all procedures for the
acquisition of goods and services
Municipal structure
Responsible
Oversight Over
Approving policy,
IDP and budget
Mayor
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
Council
Accountable to
Community
Enhanced oversight
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.
Role of MPAC
 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
MPAC terms of reference
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
Delegations to MPAC
 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;
Conclusion
 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