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Best Practice Getting clean Audit Report

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Best Practice Getting clean Audit Report

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    1. Best Practice – Getting clean Audit Report 9/9/2012 1

    2. CONTENTS MUNICIPALITY OVERVIEW FACTORS CONTRIBUTING TO SUCCESS POLITICAL INTERFACE CONCLUSION 9/9/2012 2

    3. OVERVIEW Low Capacity 11 councilors - Plenary MM Office & 4 Departments Entity Zelpy ( wholly owned by Municipality ) - Spirulina - Game farm - Lucern 9/9/2012 3

    4. Factor 1 : Year Activities Do proper planning Implementation of SDBIP Departmental meetings HOD meetings & reports per SDBIP IDP & Budget process plans & implementation 9/9/2012 4

    5. Factor 2 : Budgeting process Adhere to time frame & deadlines Good cash flow projections Votes properly allocated Ensure policies, procedures & systems are in place Development of By-laws & delegations Ensure community participation Communicate both good news & bad news 9/9/2012 5

    6. Factor 3 : Supply Chain Management process Delegations in place Clear segregation of duties and approvals Necessary Three committees set up Headed by a Manager for responsibility purposes Clear flow of events from Memo generation; Sitting of Specifications; Tendering process; Evaluation and Adjudication. Clear time lines on each step in place & adhered to Minimizing “ waiver “ of tender process If there’s a different view on the recommendation, send back than MM allocating a different one… Hold HOD’s responsible if their department doesn’t follow the supply chain. 9/9/2012 6

    7. Factor 4 : Revenue Management Creditors Debtors Correct billing & dates Implementation of credit control policies Managing expenditure – Cash MiG expenditure Disclosure of all grants and budget adjustment 9/9/2012 7

    8. Factor 5 : Legislative Requirements Its legislation – Leave critics of compliance Monthly Finance committee meetings chaired by Councilor of Finance Reports to the Mayor & Council Reports to Treasury & Department of Local Government & Housing Annual report in line with circular issued Internal audit & Audit committee in place 9/9/2012 8

    9. Factor 6 : Capacitating warm bodies & correct systems Heads of departments to manage their departmental finances – training done Staffing Treasury office and its sections Qualifications and experience key in key positions Encourage multi skill in Treasury office Our systems work for us – ready to share information about Open Edge systems Might get clean audit report on the year of conversion 9/9/2012 9

    10. Factor 7 : Managing Audit Process Development of Audit plan Submission on time – Two statements ( municipality & entity ) Also submit a consolidated statement Availability of Heads of Departments & Senior Finance staff Interaction of Internal Audit with Auditors Planning meeting with Auditors & interaction Disclose major issues & provide explanations in advance to auditors 3 – 5 days response to audit queries MM driving the process, have HOD’s dealing with queries Don’t get the Auditors waiting… Auditors not there to get You … Dealt with last years issues raised in Audit Ensure availability of supporting documents 9/9/2012 10

    11. POLITICAL INTERFACE Develop good working relations with Mayor & Councillors Keep Mayor & responsible Councillor posted Few audit meetings – bring them in Encourage good working relations within Councillors themselves Manage political mandates correctly Direct good relationship between MM & Mayor Encourage good relations between HOD’s relevant Councillors Provide correct information to Councillors - public engagements 9/9/2012 11

    12. Conclusion Get your Act right Ensure soft issues addressed Develop an inclusive approach Audit not a “ Finance “ babe ( Finance has enough babies already ) 9/9/2012 12

    13. To achieve this - teamwork and support is vital from council; HOD’s; all staff members and community representatives You don’t get clean Audit when the audit report is issued Clean Audit is obtained on the 1st July : when financial year starts Only when all contribute their firewood can they build up a strong fire 9/9/2012 13

    14. NDO LIVHUWA NDAA Abram Luruli : Municipal Manager Musina Local Municipality Tel : 015 534 6151 Fax : 086 515 1328 Cell : 083 635 8758 Email : musinamm@limpopo.co.za luruli@mail.ncdnet.co.za 9/9/2012 14

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