Fostering Better Service Delivery Governance Prepared by Mr ZA Williams For the IMFO Audit and Risk Indaba 20 May 2014
CONTENTS • Defining Service Delivery • Defining Governance • Service Delivery – Background • Role of Council / EXCO / MAYCO Role of Municipal Public Accounts Committees • Role of Audit Committees • Role of Internal Audit • Role of Management
Defining Service Delivery • Service delivery in municipalities is the implementation of government policies through municipal activities consisting of resources, processes, outputs, and outcomes that ensure a reasonable quality of life for all citizens. • Resourcesare inputs to deliver services (include funds, people, staff, time, knowledge and experience) • Processesthrough which resources are transformed into products (strategic and operational management decisions and actions in the design and implementation of policies)
Defining Service Delivery – cont. • Services are outputs or end-products of government policies (roads, water and sanitation, electricity, etc.) • Outcomes represent the impact of those end-products.
Defining Governance • Processes through which power and authority are exercised between and within institutions of the state and civil society concerning the allocation of resources. Governance means: • Enacting legislation, no matter how subordinate and to enforce that legislation directly or indirectly • Taking decisions that can affect the rights of other persons, and to exercise discretion and answer to requests or petitions • Oversee legal compliance in the implementation of service delivery • Determining priorities and allocating resources through the approved budget • Employing staff and directing their efforts • Compelling citizens to pay taxes and levies
Service Delivery – Background • South Africa is a country confronted by uneven development • Better services to metropolitan areas whilst there are limited services in rural areas. • Apartheid Spatial framework located mostly the black majority in inaccessible under-developed areas • Huge infrastructure backlogs needing large financial investments • Consumers of municipal services are at the door step of municipalities
Service Delivery – Background – Cont. • Balance between maintenance of infrastructure in urban areas whilst developing under-developed areas • Challenge of urbanisation and migration from rural areas or underdeveloped areas • Dilapidated infrastructure • Challenges of revenue collection by many municipalities resulting in poor maintenance of infrastructure • Underspending of capital budgets whilst there are huge backlogs • Underfunding to some with capacity to spend their capital budgets
ROLE OF COUNCIL / EXCO/ MAYCO • In consultation with communities determines service delivery priorities • Develops policies and by laws to facilitate service delivery • Ensures good corporate governance in service delivery implementation • Ensures compliance with legislation in service delivery processes • Oversee the implementation of the SDBIP • Facilitates quarterly performance reviews to evaluate performance • Holds management accountable for service delivery failures
ROLE OF THE MPAC • To promote good governance, transparency, and accountability on the use of municipal resources (service delivery inputs) – increased public awareness on financial and performance issues of the municipality • Review in-year reports and apprise the Council of any service delivery and management performance concerns noted to the Council • Holds management accountable for service delivery challenges
ROLE OF AUDIT COMMITEES • To provide independent advice to the Council, Accounting Officer, and Management Based on the review and critical analysis of financial and non-financial information provided to the Audit Committee by the Accounting Officer: • Apprise the Council on service delivery risk concerns, and how these are managed by management. • Apprise the Council on the financial performance and position of the municipality and the effect thereof on service delivery. • Oversee internal audit (performance and independence) and advise the Council as necessary • Advise the Accounting Officer and management on how to best address the matters listed above
ROLE OF INTERNAL AUDIT • To provide independent and objective assurance and advisory services on governance, risk management, and control Based on the evaluations performed on governance, risk management, and control in respect of service delivery, internal audit is: • The source of independent and objective assurance information on service delivery to the oversight structures. • The source of independent and objective advice to management in order to assist in service delivery improvement and achievement of the municipality’s objectives.
Role of Management Management, a key catalyst for service delivery, should ensure that: • IDPs, budgets, and PMS are strategically aligned. • Annual budgets are implemented by municipal officials through SDBIP’s. • Organisational structures are functional – critical for service delivery. • Only suitably qualified and experienced personnel are appointed – to facilitate service delivery. • Services are delivered within the legal framework • Risk exposures to service delivery are managed and limited to acceptable levels.