1. Institute of Municipal Finance Officers & Related Professions
CAN AUDIT COMMITTEE AND MPAC CONTRIBUTE TO THE CLEAN ADMINISTRATION? –SEAMLESS COMBINED ASSURANCE
IMFO Audit & Risk Indaba 2015
20 – 22April 2015: Olive Convention Centre, Durban
Institute of Municipal Finance Officers & Related Professions

2. Institute of Municipal Finance Officers & Related Professions
TOPICS TO BE COVERED
Basic principles of clean administration
Founding mandates and purpose of audit and municipal public accounts committees,
How they come together in municipal governance processes
Challenges in making them effective
Recommendations
Institute of Municipal Finance Officers & Related Professions

3. Institute of Municipal Finance Officers & Related Professions
BASIC PRINCIPLES OF CLEAN ADMINISTRATION
Duty of Care
Duty of Loyalty
Duty of Obedience or Compliance
Effective Planning and Performance Management
Effective Resource Management
Accountability and Transparency
Ethical and Responsible Behavior
Institute of Municipal Finance Officers & Related Professions

4. Institute of Municipal Finance Officers & Related Professions
FOUNDING MANDATES AND PURPOSE
Text
Audit Committee
MPAC
Mandate
Section 166 of the Municipal Finance Management Act, Act No. 56 of 2003
Section 79 of the Municipal Structures Act No of 1998
Purpose
Advise the municipal council, the political office-bearers , the accounting officer and the management staff of the municipality
Exercise oversight over the executive functionaries of council and to ensure good governance in the municipality
Institute of Municipal Finance Officers & Related Professions

5. Institute of Municipal Finance Officers & Related Professions
FUNCTIONS
Functions
Audit Committee
MPAC
Monthly, Quarterly and mid-year reports
Assess municipal performance and report to council
Interrogate and report any matter of concern to council
Annual Financial Statements
Review and advise on adequacy, reliability and accuracy of financial reporting and information
Copies of the financial statements submitted to the A-G must be submitted to the MPAC
Text
Institute of Municipal Finance Officers & Related Professions

6. Institute of Municipal Finance Officers & Related Professions
FUNCTIONS
Functions
Audit Committee
MPAC
Annual Report
Assist the oversight Committee (MPAC) in the review of the annual report
Consider the annual report and prepare a draft oversight report to be submitted to the council for purposes of adoption
Matters raised by AG
Ensure submission of plan and report on implementation of recommendations
Interrogate plan and make recommendations to the council
Text
Institute of Municipal Finance Officers & Related Professions

7. Institute of Municipal Finance Officers & Related Professions
CHALLENGES
a) Attitude towards Governance and Compliance with requirements
b) Relationship between Audit Committee, Council and Oversight
c) Inadequate understanding of the purpose and content of the Annual Report
d) Emphasis is more on compliance rather that a value adding governance process/requirement.
e) The quality of reports submitted to Council for adoption sometimes is poor
Institute of Municipal Finance Officers & Related Professions

8. Institute of Municipal Finance Officers & Related Professions
RECOMMENDATIONS
Bring back the relationship in the family
Change attitude towards Good Governance
Let Council adhere to basic principles of Good Administration
Institute of Municipal Finance Officers & Related Professions

9. Institute of Municipal Finance Officers & Related Professions
Thank You!
Institute of Municipal Finance Officers & Related Professions