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PRESENTATION TO THE SELECT COMMITTEE ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS 04 SEPTEMBER 2012. BACKGROUND. Critical issues raised by the AG are as follows : SCM Human resource Predetermined objectives Information technology/Financial system Quality of AFS(Material misstatements.

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Background

PRESENTATION TO THE SELECT COMMITTEE ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS04 SEPTEMBER 2012


Background

BACKGROUND

Critical issues raised by the AG are as follows:

  • SCM

  • Human resource

  • Predetermined objectives

  • Information technology/Financial system

  • Quality of AFS(Material misstatements


Background1

BACKGROUND

Challenges/underlying factors

  • Inappropriate/poor skills

  • Poor performance reporting and management with no consequences

  • No ownership of leadership: no appetite to take responsibility


Presentation outline

PRESENTATION OUTLINE

  • LEGISLATIVE MANDATE

  • OPERATION CLEAN AUDIT PROGRAMME

    • Records Management Project

    • Capacity Development Project

    • MPAC

    • Audit Remedial Plans


Mfma legislative manadate for mec dlgta

MFMA LEGISLATIVE MANADATE FOR MEC dlgta

Section 25: Failure to approve the budget before the start of the financial year, municipality must report to MEC dlgta.

This must be read together with section 55 of MFMA which stipulates that the Mayor must inform MEC dlgta and the MEC shall undertake appropriate provincial intervention in terms of section 139


Legislative man cont

LEGISLATIVE MAN. CONT.

  • Sec 127[4][b]: The Auditor General must inform the MEC dlgta in the event that the Accounting Officer does not submit Annual Financial Statements

  • Section 131(2) : MEC dlgta to assess all AFS’s and whether municipalities have appropriately addressed the queries raised by the AG and report to the Provincial Legislature


Legislative man cont1

LEGISLATIVE MAN: CONT.

  • Section 132(3) : MEC dlgta to monitor whether municipalities have submitted annual performance reports and oversight report to the legislature.

  • Section 136:Provincial intervention: MEC dlgta should act promptly in the event that he becomes aware that financial problems exist within a municipality. He will consult the mayor and also assess the extend of the problem and advice EXCO on appropriate action


Legislative man cont2

LEGISLATIVE MAN: CONT.

  • Section 141 :Financial recovery plan.

  • The MEC dlgta must work closely with the MEC Finance for the development, implementation and monitoring of Financial Recovery Plans


Operation clean audit programme

OPERATION CLEAN AUDIT PROGRAMME

  • RECORD MANAGEMENT

  • CAPACITY BUILDING

  • MPAC ESTALISHMENT

  • AUDIT REMEDIAL ACTION PLAN

  • OTHER INITIATIVES


Record management

RECORD MANAGEMENT

THEME:

“PROPER RECORDS MANAGEMENT FOR CLEAN AUDIT 2014 AND BEYOND.”

OBJECTIVES:

  • Develop and entrench a culture of proper records management in municipalities

  • Promote good governance to enhance service delivery through proper records and information management

  • Establish processes, mechanisms and procedures for proper records management that will contribute towards the Clean Audit 2014 objective.


Records man cont

RECORDS MAN: CONT.

Project deliverables

  • Establishment of sustainable and functional records management procedures and practices within the BTO’s of priority municipalities

  • Development and implementation of Approved Municipal Record Management File Plans

  • Improved Municipal Audit outcomes by 2014


Record management cont

RECORD MANAGEMENT (cont.)

PROGRESS /ACHIEVEMENT TO DATE

PHASE 1-

  • Districts record management workshops for Records Management officials of all 23 municipalities were conducted.

  • 81 officials attended the District wide sessions.

  • The sessions were conducted as follows: 26-27 June in DRSM DM, 4-5 July in DKK DM, 10-11 July in NMM DM and 31 July -1 August in BPDM.

  • Phase 1 is completed.


Record management cont1

RECORD MANAGEMENT (cont.)

PHASE 2- Record management awareness drive to politicians and senior officials of municipalities per district.

  • 1st Consultation with Section 56 managers: BPDM on 15 August

  • 2nd Consultation with Section 56 managers : 22 August NMMDM

  • 3RD Consultation: 28th August DRSMDM

  • Still to confirm with DKKDM


Background

CONT.

  • Consultation with political leadership: MuniMEC of 31st August

    Phase 3: 3 days Hands on Training for Records Managers

  • Training for 33 officials from 11 priority municipalities: 11-13 Sept

  • training for 24 officials from 12 non-priority municipalities: 18-20 Sept.


Record management cont2

RECORD MANAGEMENT (cont.)

PHASE 4 – Record management inspections and physical and intensive support.

  • In partnership with DSAC inspections on 11 priority municipalities to verify needs, challenges and non-compliance issues for intensive support: e.g. an amount of R800 000 has been set aside by the department to buy necessary equipment for Records Units in these municipalities. Costed business plans are being finalized to this end.


Capacity development

CAPACITY DEVELOPMENT

  • 180 municipal finance officials graduated in April 2012 for an NQF 3 Local Government Accounting Certificate.

  • 111 officials will continue to NQF Level 4 facilitated by SAICA/SESTO starting Sept 2012.

  • 106 municipal officials/ unemployed graduates started NQF Level 6 training in April 2011 facilitated by SAICA.[18 months']

  • Second NQF 6 intake started in April 2012- October 2013


Background

CONT.

  • The department is in a process of ensuring that all the graduates are optimally utilised in the BTO of municipalities to address Audit queries and revenue enhancement projects amongst others.


Dept finance project

Dept. Finance Project

Project Purpose

  • The department launched a Municipal Financial Support Programme in June 2012

  • The project aims to improve financial governance and build technical capability in municipalities

  • The programme is to ensure improvement with the submission of AFS by all 23 municipalities by end August

  • The technical support will be provided to municipalities over a period of 2 years


Background

Cont.

Project Deliverables/ Achievements to date

  • 22 B.Com graduates have been deployed to 14 municipalities since March 2012. The graduates have gone through an Internal Audit Learnership in PT

  • 16 Service Providers have been deployed to 13 municipalities to assist with the preperation of AFS and Grap compliant asset registers

  • All 23 municipalities submitted AFS for 2011/12 including backlogs dating from 2008/09


Background

MPAC

  • All 23 MPACS were established by November 2011

  • The department in partnership with AG conducted induction and orientation work sessions for all 23 MPACs per district from November 2011- March 2012

  • The department in partnership with PT and APAC, conduct another round of work sessions for MPACs in May-June 2012

  • Annual Work plans have been provided for each MPAC for adoption and implementation by Council

  • District Based forums to support MPACs will commence in DRSMDM on 28 August


State of mpac establishment and functionality cont

State of MPAC establishment and functionality cont…

PROGRESS PER DISTRICT

Dr Kenneth Kaunda DM

  • MPAC Visited the projects that are implemented in local municipalities to check progress.

  • MPAC had interviews with management to discuss monthly, quarterly and annual reporting, MPAC budget, MPAC support staff, Internal controls

  • Annual report was perused and subsequent to that, the oversight report was drafted and tabled in council.

  • Investigations were conducted against officials with criminal charges and the process is still unfolding.

  • The entity [Development Agency] was also investigated and findings were presented to council.


State of mpac establishment and functionality cont1

State of MPAC establishment and functionality cont…

City of Matlosana LM

  • MPAC came into effect during February 2012.

  • Annual program drafted and approved by council.

  • Nine meetings were held in the preparation of the oversight committee.

  • There were several community consultations and feedback was presented.

  • MPAC made clear recommendation on both the annual report and oversight reports.

  • MPAC managed to have the meetings with AG, most issues were clarified.

  • MPAC will engage management to discuss IDP and budget issues.

  • It was indicated that Municipal Managers contract have not yet been signed but the matter will be addressed as soon as possible.


State of mpac establishment and functionality cont2

State of MPAC establishment and functionality cont…

Tlokwe City Council LM

  • MPAC was established on 27 November 2011.

  • 2012/13 work program will be tabled to council soon.

  • Several meetings were held since MPAC was established.

  • Annual report was not tabled in time therefore oversight by MPAC was compromised.

  • Several reports were perused by MPAC and findings were tabled to council.

  • MPAC is still engaging with the oversight report

  • Code of conduct and laws for MPAC is approved by council.

  • Sec 71 and 72 reports are not yet attended to.


State of mpac establishment and functionality cont3

State of MPAC establishment and functionality cont…

Ventersdorp

  • MPAC established but not functional.

  • Annual workplan developed but not adopted

  • MPAC was not involved in the IDP/budget process.

    Maquassi Hills

  • MPAC established but not functional

  • Only one meeting was held

  • Annual workplan developed but not adopted

  • MPAC was not involved in the IDP/budget process


State of mpac establishment and functionality cont4

State of MPAC establishment and functionality cont…

NgakaModiriMolema District

  • Work programme adopted

  • Internal Audit is functional and provide adequate support

  • Some members of MPACs were not invited to the strategic planning meeting

  • One meeting was held

  • Officials are not supportive to the MPAC


State of mpac establishment and functionality cont5

State of MPAC establishment and functionality cont…

Tswaing

  • Work programme adopted

  • Administrative staff is supportive

  • Annual Report not completed

  • All position for section 57 are filled and 46 managers have signed performance agreements (Although they have not submitted them to dlgta)

  • Shared services is working properly

  • Local Labour Forum (LLF) is performing well


State of mpac establishment and functionality cont6

State of MPAC establishment and functionality cont…

Ratlou

  • Workplan was adopted on 31/11/2011

  • Four meetings were held

  • Municipal Manager provides assistance

  • Capital projects are not completed

  • Section 57 position are filled except CFO post


State of mpac establishment and functionality cont7

State of MPAC establishment and functionality cont…

Ramotshere

  • Work programme was adopted

  • One meeting was held

  • Annual Report was tabled on 31/01/2012

  • MPAC members are allocated functions according to the programme

  • On 18/04/2012 and 02/05/2012 meeting was postponed because the members were not forming a quorum. This was resolved with the intervention by the Speaker

  • Challenges

  • Attendance, not forming a quorum

  • Delay from Directors to submit information, councilors are in other portfolio committees


State of mpac establishment and functionality cont8

State of MPAC establishment and functionality cont…

Ditsobotla

  • MPAC is functional

  • Attempted to hold two meetings but were postponed

  • Annual report submitted

  • Work closely with LLF

  • Asked assistance from DLGTA so as to function properly

    Challenges

  • No administrative staff

  • Year Plan not approved


State of mpac establishment and functionality cont9

State of MPAC establishment and functionality cont…

Mafikeng

  • Awaiting Audit Report

  • There is no cooperation between council and LLF

  • Work plan not adopted by council

  • They are using a provisional programme

  • MPAC were concerned about invitation sent to AG, LG&TA and PT for a sitting on February, all of them did not attend. It was clarified that the invitation was not clear.


State of mpac establishment and functionality cont10

State of MPAC establishment and functionality cont…

Bojanala Platinum District Municipality

  • MPAC was established on the 24 January 2012

  • There is a work plan for MPAC which will be tabled to council

  • Public participation meetings held as follows:

  • 19 January 2012 = Moretele LM

  • 19 January 2012 = Madibeng LM

  • 22 March 2012 = Kgetleng LM

  • 22 March 2012 = Moses Kotane

  • There have been meetings with locals to deliberate on critical issues

  • Members attended most workshops including those coordinated by dlgta

  • One legal adviser appointed to assist MPAC

    Challenges

  • No budget to carry out MPAC duties

  • There is no supporting staff to carryout admin functions


State of mpac establishment and functionality cont11

State of MPAC establishment and functionality cont…

Moses Kotane LM

  • MPAC was established on the 28 October 2011

  • There are 11 MPAC members

  • MPAC drafted their first quarterly report

  • All members attended the MPAC induction

  • No support staff, a request was made to council to that effect

    Challenges

  • No budget to carry out MPAC duties

  • There is no supporting staff to carryout admin functions

  • Not all councilors fully comprehend the roles of MPAC and its duties. Therefore there is a need to capacitate council.

  • Request was made to Provincial Treasury and dlgta to support MPAC


State of mpac establishment and functionality cont12

State of MPAC establishment and functionality cont…

Madibeng LM

  • 2009/10 and 2010/11 annual report were not submitted on time

  • The above reports were submitted to Auditor General but rejected since financial matters were not included.

  • Annual reports were scrutinized, and recommendations were tabled to council

  • After the corrections were made, the report was approved by council and published.

  • Comments by the public are still to be obtained.

  • Resolution was taken that two officials will be supporting MPAC with admin work.

  • No hearing or investigations were made or recommended by MPAC as yet


State of mpac establishment and functionality cont13

State of MPAC establishment and functionality cont…

Moretele LM

  • MPAC members attended all workshops facilitated by DLG&TA

  • Several meetings and Imbizos were held during March 2012.

  • MPAC consulted the community with regard to the annual report.

  • Summoned different departments within municipality to clarify and resolve various burning issues.

  • No budget for MPAC and currently utilizing budget of speakers’ office.

  • One official was seconded to do MPAC secretariat duties.

  • MPAC appreciates the support by Province.


Mpac cont

MPAC CONT.

  • DRSM DISTRICT MUNICIPALITY

    • Conducted detail analysis of the SCM Reports- Supply Chain Management Report for the period ended 31 June 2012.

    • Conducted detail analysis of the Management Reports (Section 71 Report) for the period ended 30 June 2012 e.g. Departmental expenditure performance

    • Planning, Budgeting, and Performance ManaConducting of the 3rd Quarterly Review of the implementation of the 2011/2012 IDP Process Plan/District gement Programme – 2012/2017.


Background

CONT.

  • Conducting the Quarterly Review of the performance and effectiveness of the District Public Accounts Committee (DPAC).

  • Review of the Annual Work Programme

  • Review of the Service Delivery Budget Implementation Plan (SDBIP)

  • Review of the Performance Agreements – MM and Section 56 Managers

  • Amendments of the Terms of Reference – change of name from DPAC to MPAC

  • The DPAC members and officials attended the training on the Oversight Role of Councillors organized by the Institute of Municipal Finance Officers (IMFO) from the 16-17 January 2012


Background

CONT.

  • Kagisano Molopo LM

  • MPAC members are lacking skills and capabilities to deal with reporting issues.

  • There are nine members.

  • Many meetings were called but members did not attend.

  • MPAC is not functional.

  • Three Service Providers are appointed by PT to assist municipality to prepare AFS, therefore hope is that municipality will submit on time.


Background

CONT.

Greater Taung LM

  • MPAC consist of ten members

  • Chairperson was only appointed in July 2012.

  • There is lack of corporation between MPAC and administration.

  • There is political instability that hampers the duties of MPAC.

  • Oversight committee still exist therefore there is clash between their roles and MPAC roles.

  • Appointed chairperson promised that they will report on their functionality during September 2012.


Background

Cont.

Naledi LM

  • MPAC’s annual work plan was approved by council.

  • Six meetings were held.

  • No reports received from MM.

  • No corporation between MPAC and administration.

  • There was a meeting with MM and MPAC requested that in the next meeting MM must bring along reports.


Background

Cont.

Mamusa LM

  • MPAC is composed of five members.

  • There is no assistance or support staff.

  • Only one meeting was held.

  • MPAC is not functional.

  • Municipality was advised report their frustrations to MEC dlgta, Council, and District municipality.


Background

Cont.

Lekwa Teemane

  • MPAC was established during Sep 2011

  • There is no support staff provided.

  • Meetings are held after bi-monthly but reports are not submitted.

  • Most senior managers are acting.

  • Audit committee does not engage MPAC when dealing with important issues.

  • MPAC is considered dysfunctional.


State of mpac establishment and functionality cont14

State of MPAC establishment and functionality cont…

RECOMMENDATIONS

  • All MPACs to finalise their workplans and table for adoption

  • Establishment and launching of District and Provincial MPAC Chairpersons Forum

  • MEC for local government to review the reporting protocols of MPACs [To ensure that MPAC recommendations are tabled to before councils]


Audit remedial plans

AUDIT REMEDIAL PLANS

  • 10 municipalities that have received 2010/11 audit outcomes have completed and submitted Audit Remedial Plans to the department

  • The department is in the process of finalizing section 131[2] reports for the 2010/11 audit

  • The department has already submitted section 131[2] reports for 2007/08,2008/09 and 2009/10 as required by legislation.


Other achievements

OTHER ACHIEVEMENTS

  • The department has appointed 2 Deputy Director’s , each responsible for Operation Clean Audit and Revenue Management respectively.

  • Deployed AD Municipal Finance to Lekwa Teemane as acting CFO, since February to date.He has assisted the municipality to move from disclaimer to qualified audit opinion.


Background

The way forward is however best

captured by our Former State President:

“Our actions as local government should make an invaluable contribution to the important task of creating a humane society and a humane city where we work selflessly for the betterment of local communities where we fully understand that our responsibilities are to the people, and we are every step of the way, accountable, sensitive and responsive to the needs of the people”.

President Thabo Mbeki


The people own the car

THE MUNICIPALITY IS LIKE A MOTOR VEHICLE

The people own the car

The Executive Mayor drives the car for the owners -

The Municipal Manager looks after the engineof the car


To keep going the car needs oil petrol

To keep going the car needsOIL & PETROL


Background

The Municipality needsGovernors & Administrators

Political Leader

Managers & Administrators


Background

GAP ANALYSIS

  • VISION

  • MISSION

  • Where the Country

  • desires to be.

Using CLEAN AUDIT as intervention

Present

Challenges

Future

Prospects

  • Municipal Excellence

  • Democratic Governance

  • Basic Service Delivery

  • Infrastructure Development

  • Financial Sustainability

  • Economic Growth


Clean audit 2014

CLEAN AUDIT 2014

  • Municipal Excellence

  • Democratic Governance

  • Basic Service Delivery

  • Infrastructure Development

  • Financial Sustainability

  • Economic Growth

A big leap will make a difference!

Desired

future

Little risk in small steps

Current

reality

Current

future


Background

CLEAN AUDIT 2014

Vision

MUNICIPAL

EXCELLENCE

Achieve the goals of:

  • Municipal Excellence

  • Democratic Governance

  • Basic Service Delivery

  • Infrastructure Development

  • Financial Sustainability

  • Economic Growth


Background

Municipal Transformation & Organizational Development

Municipal Manager

Mayoral / Exec Comm.

Drivers of the Municipal Clean Audit 2014

Local Government Strategic

Agenda

CLEAN AUDIT 2014

  • Municipal Basic Service Delivery & Infrastructure

  • Local Economic Development

  • Good Governance, Community Participation & WCs

  • Financial Viability and Management

Community Participation


Background

CLEAN AUDIT BUS

CLEAN AUDIT 2014

CURRENT DEVELOPMENT REALITY

VISION

AND

MISSION

VALUE SYSTEM AND CORPORATE CULTURE

CURRENT

DESTINATION

FUTURE

DESTINATION


Background

CLEAN AUDIT

PREPARATION FOR JOURNEY

  • Process Plan

  • Integrated Development Plan


Background

CLEAN AUDIT

TOUR LEADER

Executive Mayor /Mayoral Committee

Municipal Manager /

Senior Managers

DRIVER


Background

CLEAN AUDIT

  • Mayoral Committee & Councillors

  • Senior Management and Staff

  • Ward Committees

  • Community Development Workers

  • Ward Field Workers

  • Stakeholders and Community

  • MPAC

PASSENGERS


Background

CLEAN AUDIT

  • Key Performance Areas (KPA’s)

  • Strategies and Development Objectives

  • Key Performance Indicators (KPI’s)

  • Performance Targets

  • Projects/Programmes/Plans

  • Operational Business Plans

ITINERARY


Background

CLEAN AUDIT

  • Finance

  • Equipment / Material

  • Performance Management

  • Communication

FUEL


Background

CLEAN AUDIT

  • Municipal Council (Institution)

  • Committees

  • Decision-making process

  • Organisational Structure

  • Systems

  • Policies / Procedures

  • By-laws

  • Delegated Powers & Functions

ENGINE


Background

CLEAN AUDIT

Monitoring, Evaluating and Reporting

MAINTENANCE


Background

Thank you.


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