Relationship between Internal Audit, MPAC and

Transcript:Relationship between Internal Audit, MPAC and:
Relationship between Internal Audit, MPAC and Audit Committee IMFO Annual Conference 2016 at Durban ICC, 04 October 2016 Presented by: Makhosandile Kwaza Agenda Introduction Role of the municipal council Council committees Difference between Audit Committee and MPAC Introduction (1) 40. Government of the Republic.— (l) In the Republic, government is constituted as national, provincial and local spheres of government which are distinctive, interdependent and interrelated. Introduction (2) 151. Status of municipalities -: The local sphere of government consists of municipalities, which must be established for the whole of the territory of the Republic. The executive and legislative authority of a municipality is vested in its Municipal Council. A municipality has the right to govern, on its own initiative, the local government affairs of its community, subject to national and provincial legislation, as provided for in the Constitution, The national or a provincial government may not compromise or impede a municipality’s ability or right to exercise its powers or perform its functions. Principle of separation of powers Constitution gives expression to the principle of separation of powers by recognising the functional independence of the three branches of government (executive, legislature and judiciary). In the local government the independence between the executive and legislature is not exist. Same councillors who are executive members become part of legislative in the council. Oversight report on annual report Section 129 of the MFMA – published Section 129(4) of the MFMA only provides for the issuance of guidance on the manner in which municipal councils should consider annual reports and conduct public hearings. Does the council need to still appoint the committee to prepare the oversight report or is that the function of MPAC. Perhaps the terms of reference for MPAC should also give mandate to MPAC to perform this function. Council Section 79 Committees Section 80 Committees Audit Committee Topic Relationship between: Internal Audit; Audit Committee; and Municipal Public Accounts Committee (MPAC) Internal Audit Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. Established in terms of s 165 of the MFMA Prepare a risk based IA plan Differences between Audit Committee and MPAC Audit Committee Composed of Independent members who have certain expertise. Advise the Executive, Accounting Officers