Transcript Document

Presentation on OPCA and
Governance support to Gauteng
Municipalities on clean audit
achievements: PCC Case Study
22 May 2014
Table of Content
•
•
•
•
•
•
•
Background
Objectives of the Operation Clean Audit
Provincial Coordinating Committee (PCC)
The composition of the OPCA PCC
Approach and methodology
Challenges
Templates
Background
• The Gauteng OPCA PCC was officially established by
the Premier as requested by the minister of
Cooperative Governance and Tradition Affairs
• It was established on the 15th of October 2009.
• The MEC for COGTA was tasked with the
coordination of the committee
Objectives of the OPCA PCC
• The OPCA PCC was established to monitor and
support municipalities towards the achievement and
sustenance of clean audits
• The overall goal of a clean audit is to return the
municipality to an acceptable level of liquidity (the
ability to turn short-term assets into cash to cover
debts), solvency (the ability to meet long-term fixed
expenses and to accomplish long-term expansion and
growth) and cash flow (available cash on hand), and
ultimately to longer-term financial sustainability,
Objectives of the OPCA PCC
To achieve its objectives, a clean audit must:
• Reverse causes of distress in distressed
municipalities,
• Resolve the financial crisis,
• Achieve a rapid improvement in financial
performance,
• And regain community and other key stakeholder
support
The composition of the OPCA PCC
• The committee is made up of representatives from the
following institutions:
– Gauteng municipalities
– Gauteng COGTA (Coordination M&E and support)
– Gauteng Provincial Treasury (M&E and support),
– IMFO (Support: Assessment of Key controls,
Internal Audit and Performance management
– SALGA, (M&E and Support)
– Office of the Premier, (Oversight)
– Provincial Office of the Auditor General
(Verification and assurance)
Approach and methodology
• The committee has a technical sub committee
that is responsible for performing technical
support to municipalities.
• Quarterly meetings are held
• Meeting for three days divided as follows– Day 1: metros,
– Day 2 Sedibeng district municipalities
– Day 3 Westrand district municipalities
Approach and methodology
January:
• Municipal presentation of AG report and management
letter remedial plans by municipalities
• In-depth assessment and analysis of the AG report
and management letter remedial plans by the
stakeholders
• Presentation of progress made in implementing the
plans to date by municipalities
• Input into plans and pledge of support by stakeholder
to contribute to the achievement of the remedial plans
Approach and methodology
• Mid June: Assessment of audit readiness which
entails:
• Presentation of progress made in implementing the
remedial plans
• Presentation of closing processes and procedures
• Presentation of AFS preparation plans
• Assessment of AFS preparation plans by
stakeholders
Approach and methodology
• September: Members attend municipal audit steering
committee meetings to monitor and support
municipalities during audit
• All OPCA PCC reports are finally presented to the
Premiers Coordinating Forum, which is made up of
the premier, MECs for COGTA and Finance, mayors
and municipal managers
Approach and methodology
In addition items that are specific to each quarter, the
following issues are presented at all OPCA PCC
meetings:
• Presentation of the progress made in implementing
the key controls deficiencies
• Assessment of the key controls dashboards by the
stakeholders
• Presentation of risks that might impact of audit
Approach and methodology
• Presentation of challenges in implementing GRAP 17
• Presentation of the Role of municipal political and
administrative leadership
• Progress on reporting on Pre-determined objectives
• Progress on addressing IT issues
• Inputs by AG senior managers on the municipality that
they audit
Approach and methodology
Municipal OPCA steering Committees
– The municipal OPCA steering committees serve as
the technical implementing committees
• They are chaired by the CFO or Municipal manager.
• They comprise of heads of all departments within
municipalities.
Approach and methodology
• They serve to ensure that all issues raised in the AG
report and management letters are effectively
addressed
• Internal audit is a critical part of these committees as
they verify the claims made by the HODs
Challenges
• Malicious compliance in the development of plans
– Solution: interrogation of the plans and
engagements on them
• Lack of commitment by HODs outside of Finance to
timeously implement remedial measures to address
issues raised in their areas of responsibility
– Escalation to the Municipal Managers
• Institutionalization of the OPCA PCCs within
Provinces
– Provincial COGTAs to be capacitated to perform
the coordination task
Templates
• As part of support by the OPCA PCC, a template was
developed to be utilized to develop the remedial plans
by municipalities
• This is the template that municipalities present at the
OPCA PCC meetings as well as at the municipal
OPCA steering committee meetings.
• These are held weekly, in some case fortnightly
• OPCA PCC technical teams attend the municipal
OPCA steering committee meetings.
Way forward
• Inclusion of Internal auditors in the OPCA PCC
• One of the key actions that the OPCA PCC will
undertake is to seek a slot in the MPAC meetings to
present the outcomes of the OPCA PCC meetings.
• Continue to ensure that OPCA PCC as a committee
adds value to municipal processes by seeking
innovative ways to support municipalities
• Undertake an independent assessment of how OPCA
as a project has enhanced governance and service
delivery