MPAC PRESENTATION STRATEGIC PLAN 2013

Transcription

1 MPAC PRESENTATION STRATEGIC PLAN 2013

2 MPAC The roles and responsibilities of council should always be carried out with a clear distinction between oversight and interference in administration, as defined in the Municipal Finance Management Act, 2003, Act 56 of 2003 (MFMA), section 52(b) and 103 respectively as well as in the Code of Conduct for Councillors, defined in Schedule 1 of Municipal Systems Act, No.32 of 2000

3 MPAC MPAC will undertake and manage similar functions and responsibilities for municipalities, as undertaken by the Standing Committee on Public Accounts (SCOPA) in the national and provincial legislatures, except for certain powers regarding subpoena of individuals. In the case of any irregular expenditure or any fruitless and wasteful expenditure incurred by the municipalities or municipal entities, the MPAC will have the right to call upon the accounting officer of the municipality or the chairperson of the municipal entity s board of directors to appear before it to provide information or clarity.

4 MPAC Section 129(4) of the MFMA further provides for the issuance of guidance on the manner in which municipal councils should consider annual reports and conduct public hearings, and the functioning and composition of any public accounts or oversight committees established by the council to assist it to consider an annual report.

5 PERMANENT REFERAL OF DOCUMENTS 1. MPAC shall have permanent referral of documents as they become available: In-year reports of the municipality and municipal entities. Section 71 (monthly report)- ensure that this report is submitted before the 10 th of each month to the Mayor and other relevant department.

6 MPAC Section 52 reports (quarterly reports)- the mayor must submit a quarterly report to council within 30 days of after the end of each quarter. SCM quarterly implementation reports Quarterly performance reports financial statements of the municipality and municipal entities as part of the committee s oversight process.

7 audit opinion, other reports and recommendations from the Audit Committee. information relating to compliance in terms of sections 128 and 133 of MFMA; information in respect of any disciplinary action taken in terms of the MFMA where it relates to an item that is currently serving or has served before the committee;

8 information relating to compliance in terms of sections 128 and 133 of MFMA; any other audit report from the municipality or its entities.

9 performance information of the municipality and municipal entities.

10 MPAC FUNCTIONS To consider and evaluate the content of the annual report and to make recommendations to Council when adopting an oversight report on the annual report. In order to assist with the conclusion of matters that may not be finalized, information relating to past recommendations made on the Annual Report, must also be reviewed. This relates to current in-year reports, including the quarterly, mid-year and annual reports

11 MPAC FUNCTIONS To promote good governance, transparency and accountability on the use of municipal resources; To recommend or undertake any investigation in its area of responsibility, after reviewing any investigation report already undertaken by the municipality or the Audit Committee; and To perform any other functions assigned to it through a resolution of council within its area of responsibility

12 BIG QUESTION- ARE WE ON THE RIGHT TRACK? COMPLIANCE AND NON-COMPLIANCE Compliance and malicious compliance are two different things. We have realised as MPAC that we are good on the later or we don t comply at all. 1. MFMA COMPLIANCE o IN YEAR REPORTING

13 SECTION 71 REPORTS SEC 71. (1) The accounting officer of a municipality must by no later than 10 working days after the end of each month submit to the mayor of the municipality and the relevant provincial treasury This report while sometimes are submitted, they are not submitted on time. There are also no confirmations that the copies have been submitted to the Provincial Treasury

14 SECTION 72 This report must be submitted to the Mayor, National Treasury and Provincial treasury. This assessment must be completed by the 25 th of January, which indeed was tabled. The rush in which such report are done in order to be within time limits leaves much room for discrepancy and one may question its reliability and accuracy.

15 Sec 72 This report must also include steps taken to correct the issues raised in the previous annual report. o But due to late completion of annual report and auditing process, this means that this issues of the annual report are not included on the report.

16 SECTION 52 SEC 52 reports should be presented within 30 days after the end of each quarter. This report is presented every quarter as required. But its only the financial reports not municipal performances. No quarterly reporting as per SDBIP.

17 DORA REPORTING- GRANTS In terms of DORA, municipality must submit reports on grants every month to relevant department. e.g. MSIG- R was received and reports were done on a monthly basis even though some were late, August, September & October were only signed in November. But when we check with COGTA as part of our research on compliance, we were informed that no reports were received as per the requirement of DORA. (Ref: Mr Kenneth Mookeng- Cogta)

18 SEC 75 SEC 75- this section requires that the municipality must place some documents as listed under this act on website as per section 21A of the Municipal System Act; we can report that the municipality does not have a functional website. There still a problem as to who manages the website between IT Division and Communications

19 2. PERFORMANCE section 46 report- there are outstanding conclusions of the annual report processes due audit outcomes for 2009/10; 2010/11 and 2011/2012. Components of the reports were tabled in council but no oversight report were done due to lack of some components. We had then received all annual financial statements for those financial years and we will conclude the oversight reports. The advice we received from NT is that this oversight process can continue while waiting the Audit Outcomes.

20 PMS Municipality didn t comply with Regulation on Performance management. Directors didn t sign their performance agreements on the first quarter of the financial year. Its non-compliance with Schedule 4(4); Chapter 3 Schedule 24 (1) and (2) of the regulation made by the Minister in terms of section 120 of the Municipal Systems Act 32, 2000 Non-signing of performance contracts affects the review of individual Directors as per section 28 (1) of the Performance Management regulations

21 MATTERS FOR ATTENTION RECOMMENDATIONS!!! Submission of section 71 report before the 10 th working days of each month and have a proof of submission to relevant departments. Submission of accurate and reliable section 52 and SCM quarterly implementation reports. Directorate to cooperate with PMS unit to conclude section 72 and 46 reports on time. BTO to enforce compliance especially in the supply chain unit.

22 Continues Optimal utilization of the DATABASE to give SMMEs who paid to be on the database equal opportunity. Minimising deviations- as per our assessments, most of them are unwarranted. Ballooning of prices is a challenge based on the assessment on the previous SCM reports; e.g. the last SCM report indicated that seven(7) taxis were hired at a cost of R which translates that transporting one person within MORETELE cost R there are many more examples that can be given in this regard.

23 Continues Implementation and optimal utilization of the municipal website. Advertisement of council sittings as per section 19 of the MSA- last council not advertised. Improvement of the office of the municipal secretary. Tracking of council minutes and resolution including filing of documents is a challenge and have impact on the audit outcomes.

24 Continues Cooperation between MPAC and directorates is needed so that our reports to council must be informed. Establishment of internal audit committee apart from external audit committee. the purpose of this committee is ensure that issues raised by AG are attended to. There must continuously do monitoring and evaluation of audit file and ensure they are ready for presentation to the audit process (AG). Reviewing of previous audit report is essential in helping to move forward to better audit opinion.

25 MPAC BUDGET Budget is required to carry out our day to day activities: o Operational budget o Marketing:- road shows and publicity. According to Department of LG & TA, this roadshow must be led by the Mayor and Speaker. o Public consultations on Annual Reports- development of Oversight Reports. o Annual capacity building of MPAC councillors.- directive from LG & TA that Finance Management Grant must fund these workshops. o All MPAC hearings must be opened to public. SO THE CURRENT R IS INSUFFICIENT TO RUN THESE PROGRAMS

26 STAFF COMPONENTS MPAC MANAGER- OCCUPIED- MG MARINDI RESEARCHER (2): 1. ACTING- XC MABASO AND 1 VACANT SECRETARY:- VACANT WE REQUEST THAT THE POST OF RESEARCHER AND SECRETARY BE ADVERTISED AS MATTER OF URGENCY.

27 IT CANT BE FIXED IF IT IS NOT BROKEN DISCLAIMER MEANS IS BROKEN SO LETS GET IT FIXED!!!

28 CONCLUSIONS OURS WILL REMAIN MALICIOUS COMPLIANCE UNTIL SERIOUS ACTION IS TAKEN AGAINST THIS NON-COMPLIANCE. WE WANT TO EMPHASIS THE ISSUE OF QUARTERLY REPORTING ON PERFORMANCES BY DIRECTORATES TO PMS UNIT FOR THEM TO DRAFT A MUNICIPAL PERFORMANCE REPORT ON TIME AND THIS WILL ASSIST IN THE CONCLUSION OF SEC 72 MFMA REPORTS AND SEC 46 MSA REPORTS TIMEOUSLY. SEC 32 (1)(2)(3) OF THE MFMA IS CLEAR ON WHAT SHOULD HAPPEN IN CASES OF UNAUTHORISED, IRREGULAR, WASTEFUL AND FRUITLESS EXPENDITURE. WE ARE YET TO SEE ANY ACTION TAKEN IN THIS REGARD. Additional budget for this unit is essential.

29 Continue MPAC will be hosting the Provincial MPAC forum from the 01 st -02 nd of March here in MORETELE. The forum comprises of all MPAC chairpersons in municipalities, Provincial Chair of PPAC (HON CHAUKE), AG, TREASURY, THE HAWKS, SAPS AND APAC, MECs FOR LG & TA (HON DODOVU), FINANCE(HON SEBEGO) AND SPORTS, ARTS AND CULTURE(HON MODISE). DEPARTMENT WILL BEAR THE COSTS OF THIS FORUM.

30 THANK YOU!!! RE ALEBOGA!!!