Complimentary role that the MPAC- Oversight Audit Committee - PowerPoint Presentation

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Complimentary role that the MPAC- Oversight Audit Committee play07th IMFO: 2016

CLLR LEWELE MAGDELINEMOPANI ISTRICT MUNICIPALITY04 APRIL 2016Slide2

Index1. Background

2. Legislative framework3. Establishment4. Functionality5. Achievements/Challenges

6. RecommendationsSlide3

1. BackgroundMunicipalities have been applying oversight since establishment in 2000. However the referred oversight was not at an enhanced level.

Municipalities were using the oversight committees which operated adhocly. Oversight committees were only active for two months as they were activity based. They were delegated to work on the draft annual report and would cease to exist upon tabling oversight reports in council.

Oversight role was compromised a great deal.Slide4

Legislative frameworkMFMA Section 129(4), the National Treasury may issue guidelines on:

(a)The manner in which municipal councils should consider annual reports and conduct public hearing; and(b) The functioning and composition of any public accounts or oversight committees established by the council to assist it to consider an annual report.(c) No guidelines issued in terms of subsection (4) are binding on a municipal council unless adopted by the council.

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EstablishmentThe National Treasury, Cogta

, Legislature, and SALGA had issued guidelines as per legislative provision for MPAC establishment and composition. The referred guidelines were adopted by councils for the establishment o Municipal Public Accounts Committees.Majority of municipalities country wide have established the Public Accounts Committees.Districts and provinces have also established the MPAC fora.

In Limpopo province there are established districts and provincial MPAC fora.Slide6

Cont.MPAC is established through a council resolution. The committee chairperson is also appointed through a council resolution as per Municipal Structures Act(2)(c).

MPAC is established in terms of Structures Act section 79 and it reports to council on its performance. The district and provincial fora are established in line with Intergovernmental Relations Framework Act. The forum is a platform for information sharing and learning of best practices. Slide7

Functionality or Complimentary roleThe Municipal Public Accounts Committees play a pivotal role in enhancing oversight role.

These council committees are supposed and expected to hold the municipal executives accountable on the institutional performance. The MPAC is expected to play oversight using the following tools, among others:

IDP

SDBIPSlide8

In-year (quarterly/mid-year/annual)

reports Financial statements Compliance information in terms of sections 128 and 133 of MFMA.

Oversight and Operational reports

The above tools should be captured in the delegations of MPAC. Once adopted by council it becomes a binding process and all parties affected are expected to cooperate. Slide9

Inviting the municipal executives to accountThe standing rules and orders of council should afford MPAC some space to also perform political oversight.

Currently the MPAC would convene public hearing and administration will account. The next level should be for the political executives to provide political accountability. This implies that the heads of section 80 committees would account on their directorates’ performance.Many committees have not as yet gone to this mentioned level. Slide10

Taking accountability to the next level would: enable the section 80 committees to also provide intensive political oversight over administration.

add some amount of quality into the level of discussions within section 80 committees.

enable municipalities to improve on their audit outcome.

contribute in improving the oversight and accountability roles within councils.

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Taking accountability to the next level would also call for improved mechanisms on the projects visit and grants expenditure pattern.Contract management will surely improve in the process.

Forward planning in municipalities that are still lagging behind would as well improve and effectively services delivery.Enhanced accountability would surely contribute in restoring customer confidence. Slide12

Questions to be answeredIs the above scenario reflective of what is happening in municipalities or what is supposed to happen?

How effective are the established Municipal Public Accounts Committees?What is the level of political stability within municipalities?How resourced are these committees?Slide13

Achievements to dateThe Municipal Public Accounts Committees are established as per the adopted guidelines.

There are capacity building sessions arranged for the committees.There are council adopted work plans for the MPAC.There are district and provincial MPAC fora established.Public hearings/ project visits are conducted and oversight reports tabled in council.Slide14

Association of Public Accounts Committee (APAC) is accommodating MPAC in their activities for purposes of filling on the capacity gaps.It is an achievement that some committees are effective despite little or no resources.Slide15

Challenges towards complimenting the oversight role

Some of the established Municipal Public Accounts Committees do not have dedicated support staff. Some have designated seconded staff and some have rotating staff every time there are activities.The council would, as provided for in Structures Act Section 79(2)(e), remove a member of a committee at any time. The committee would as a result lose track of events and eventually memory loss due to administrative/political instability.Slide16

Political instability impeding MPAC effectiveness. A question of which committee between section 79 and section 80 commands authority.The above scenario is sharply summarised in the New Governance Model which propagates on the Separation of Functions.

Lack of a system on the separation of functions within municipalities. Implementation of council resolutions.Lack of consequent management within municipalities. Slide17

Lack or non-adherence of standing rules and orders of council.Non-implementation of council resolutions by those delegated and no consequences.

MPAC undermined by the executives. Slide18

Recommendations towards enhancing the complimentary oversight role of MPACTaking oversight to the next level and share some experiences on it.

Municipalities to consider providing human resources to MPAC.SALGA and APAC to facilitate the establishment of a national MPAC structure as platform for information sharing.Provincial Standing Committees on Public Accounts (Scopa) to consider accommodating MPAC in their activities.Promotion of inter-municipal learning. Slide19

The presentation did not reflect on the complimentary role of Audit Committee but that of Municipal Public Accounts Committee. Slide20

THANK YOU