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MPAC PROGRAMME TRAIN THE TRAINER

MPAC PROGRAMME TRAIN THE TRAINER. MUNICIPAL PUBLIC ACCOUNTABILITY COMMITTEE Dr N.S. KEKANA. MPAC Mentorship Programme. After completion MPAC members should understand: The frameworks that regulate the workings of strategic partners

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MPAC PROGRAMME TRAIN THE TRAINER

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  1. MPAC PROGRAMMETRAIN THE TRAINER MUNICIPAL PUBLIC ACCOUNTABILITY COMMITTEE Dr N.S. KEKANA

  2. MPAC Mentorship Programme After completion MPAC members should understand: • The frameworks that regulate the workings of strategic partners • How the MPAC can utilise the various tools to enhance oversight • The mandate, role and functions of MPACs • The legal frameworks that regulate the local government oversight • How to analyse the annual reports • The place and value of questions in the oversight functions of MPACs

  3. Objectives continued… • The questioning techniques that must be adopted in order to get the best out of the MPAC public hearing • The key considerations for effective reporting by MPACs • The process of drafting MPAC resolutions • The process to follow in following up on the implementation of MPAC resolutions

  4. Ice Breaker • Why are you on this programme? • What impact have you made on the lives of your colleagues?

  5. Course Content DAY ONE • Introduction • The Role of Strategic Partners in Oversight • The Mandate, Role and Functions of MPACs • Understanding the Legislative Framework of MPACs • Facilitation Skills

  6. Course Content DAY TWO • Recap of Day One • Governance Structures and Responsibilities under the MFMA and the Role of MPAC • The Use of the Annual Report as an Oversight Tool • MPAC Oversight Function: Questioning Techniques • How to Write an MPAC Report and Resolutions

  7. Role of Strategic Partners in Oversight Accountability and Oversight • Effective Oversight means: • Have financial governance system • Financial reporting • Written committee charter • Regulatory mechanism • Oversight contributes to clean administration

  8. Oversight & Accountability By having oversight of: • Strategic planning process • Budget process • Implementation of strategic plan & budget • Effective year-in & year-end reporting OVERSIGHT IN STRATEGIC PLANNING • Is strat. Plan in line with statutory requirements?

  9. Oversight & Accountability • Is it in line with objectives? • Is it in line with: national priorities? eg: national plan of action Cabinet Lekgotla; MTEF OVERSIGHT IN BUDGETING • Is budget aligned to strat. Plan? • Adequate resources for priorities? • Budget constraints dealt with? • Budget changes focus year to year?

  10. Oversight & Accountability • Implementation/Monitoring on the following: • Is spending on track with strat. plan priorities? • Evaluate monthly & quarterly reports • Develop action plans to address audit findings • Design, improve & implement internal controls • Deal with fraud • Is governance effective?

  11. Oversight & Accountability Reporting Oversight reporting oversees: • Compliance with MFMA • Compliance with Council appropriations • Effective & efficient resource utilisation • Review of annual report on • Financial information • Non- financial information

  12. Role of Auditor General • Conducts all types of audits • Ensures standards • Ensures mandate is carried out • Ensures compliance with Acts, eg DORA; MFMA; Companies Act • Ensures internal controls like: • Leadership: finance & controls • Financial & performance management • governance

  13. National & Provincial Treasuries • Roles laid down in: • Constitution of the Republic 1996 • PFMA 1999 • MFMA 2003 • DORA • Intergovernmental & Fiscal Relations Act • Municipal Systems Act • Regulations; Circulars & Guides

  14. National & Provincial Treasuries • MFMA section 5 addresses general functions of National & Provincial Treasuries National Treasury • Enforce compliance with Section 261(1) of Constitution; PFMA & MFMA • Chapter 13 of Constitution • Monitor budget • Promote good practices • Investigate financial management

  15. National Treasury • Address breaches of financial control • Monitor & assess compliance Provincial Treasury • Assist National Treasury to enforce compliance by municipalities & its entities • This done in Section 6: Delegations by National Treasury to DG of Treasury & MEC

  16. Role of SALGA • Represent; promote & protect interests of LG • Transform LG to fulfil development role • Raise profile of local government • Ensure women participation in local govt • Develop capacity in municipalities • Advice & support municipalities • Act as employer in collective bargaining • Improve image of local government

  17. Role of Public; Civil Society; Organizations & Media • Local govt is coal face of service delivery • It is crucial to public; media & interest groups • All hold municipality accountable • Therefore full & accurate info is important • Timeous info & education • MPAC should hold info workshops • Accurate info to be disseminated • Transparency & accessibility

  18. Role of Public; Civil Society; Organizations & Media • CSOs include: unions; faith groups; community groups, etc • MPAC to determine those with direct interest • Criteria: diversity; assistance; engagement • Treasury & CoGTA to encourage MPAC to engage stakeholders

  19. Role of Public; Civil Society; Organizations & Media MPAC to use following checklist: • Competency of MPAC mbrs to engage CSOs • Does MPAC have spokes-persons? • Does MPAC provide info? • Is info updated regularly? • Does MPAC hold media briefings?

  20. Activity Group Discussion • Discuss how the MPAC can utilise the various tools and insights from the strategic partners in order to enhance oversight in the local government sphere? • What areas need to be focused on to improve the oversight? • Each group must report back after 20 minutes

  21. Mandate; Role & Functions of MPACs Oversight Arrangements • Legislatures have various committees to share work • There are 3 committees on the budget; Finance Comm; Sectoral/Portfolio Comm & Public Accounts Comm • Coordination is important • Budget oversight focuses on 3 principles:

  22. Oversight Arrangements 3 Principles • Fiscal discipline • Allocative efficiency • Operational efficiency • Finance coo deals with budget ex ante • MPAC deals with budget ex post • Circular 32 of Treasury: oversight on report & establishment

  23. Objectives of Local Government • Outlined in Mun Structures & Mun System Acts • Local govt uses resources to: • Provide democratic & accountable local govt to communities • Ensure sustainable service delivery • Promote socio-economic development • Promote health & safety in environment • Encourage community involvement

  24. Developmental Duties of Local Government Local govt to give priority to: • Basic needs of communities • Promote socio-economic development • Participate in national & provincial development programmes • Mun. to provide ff. services” • Building regulations • Airports & public transport • Public works • Storm water management

  25. Developmental Duties of Local Government Socio-cultural Services • Health • Cemeteries; funeral parlours & crematoria • Fencing & fences • Animal services & burial of animals Administration & public order • Control of public finances • Licences & control of food sellers

  26. Developmental Duties of Local Government • MPACs to ensure municipalities can offer such services • Services to be efficient; effective & economic Guidelines for Establishing MPACs • MPACs strengthen oversight in municipalities • Guidelines explain how to do that • Guideline to be read with Circular 32 15/3/06 • Speaks about structure & work of MPAC

  27. Developmental Duties of Local Government • Guideline issued by Nat. Treasury & Coop & Gov • Consulted with SALGA; APAC; provinces & Municipalities Purpose of MPAC • Established by Local Govt Mun Structures Act 117: 1998 • Serve as oversight of executive obligations of council • Hold mun. entities to account

  28. Purpose of MPAC • Increase council & public awareness of financial performance of mun. & entities Institutional Context & Functions of MPACs Institutional Context • Not a duplication of other council committees • Performs like SCOPA at Prov & National • Can call mun officials to account • May engage directly with public • May even request documents from public

  29. Institutional Context of MPACs • Can use advice of internal/external auditors • Standard rules of council apply to MPACs • Has referral documents relating to: • In-year reports of mun & entities • Financial statements of same • Audit opinion; reports & reports • Information relating to compliance of MFMA • Performance info & any reports

  30. Institutional Context of MPACs • MPAC does not formulate policy • Does not prioritise council matters • Reports directly to Speaker of Council • Interacts with community through Speaker • MPAC can follow up on reports of AG • Can also investigate performance of council • Legislation allows MPAC to call witnesses & documents

  31. Functions of MPAC • Consider & evaluate annual reports • Make recommendations • Review past recommendations & reports • Examine financial states & audit reports • Consider improvements previously recommended • Evaluate implementation of AG recommendations • Promote good governance, transparency, accountability

  32. Functions of MPAC • Recommend investigations on authorised matters • Perform other functions assigned by council • Council must ensure officials support MPAC Composition & Membership • Comprises of councillors • Those who are not on executive • By resolution taken in council • Committee can co-opt experts

  33. Composition and Membership • Experts have no voting rights in meetings • Size of committee determined by size of Mun • Less than 15 councillors = 5 MPAC mbrs • Between 15-30 = 9 mbrs • Between 31-60 = 11 mbrs • More than 60 = 13 mbrs • Mbrs should have wide experience • Must have expertise as well • Should represent various political parties

  34. Composition and Membership • Term of office related to that of council • Resignations should be in writing • Replacements by resolution of council Chairing of MPAC • Chair appointed by council resolution • Exercise transparency, ethics & good governance • Chair may be from other parties • Position of chair may be full time

  35. MPAC Work Programme • They develop own programme • Link with council work • Programme to be approved by council • Work plan based on budget cycles • Should have good understanding of: • Priorities of municipality • Key programmes of municipalities • Achievement targets & priorities • Status of budget execution per vote

  36. Typical MPAC Meeting • Review progress on issues • Review service delivery statement & achievem • Consider financial statement & budget execution • Consider audit reports & financial management issues • Mbrs of public welcome to such meetings

  37. Focus of MPAC Reports • Technical quality • Performance information quality • Quality of service delivery • Implementation of improvements plans • Evaluating why explanations of unreached targets & budgets

  38. Attendance of MPAC Meetings • Minimum 4 meeting pa or as necessary • Meetings are part of council calendar • 14 days notice for meetings Reporting MPAC reports to council on activities Reports on: meetings held; past/present financial year & resolutions Reports quarterly or as necessary Full council deliberations Meetings open to public

  39. Monitoring by MPAC • MPAC should develop monitoring mechanism • Responses to reports given to MPAC Public Involvement & Media Coverage • Public should participate • Public can make submissions • Public can be called as witness • Parliamentary privilege applies to witness • Meetings open to media

  40. Matters of Importance to MPAC • Local govt structures must be adequately capacitated • This strengthens service delivery • Council must ensure MPAC is supported by officials

  41. Activity: Group Discussion • In groups discuss the following: -The Frameworks that regulates the workings of MPACs -The mandate, role and functions of MPACs in the broader local government oversight -The powers that MPACs have in terms of the legal frameworks governing the local government sphere

  42. Understanding Legislation Governing Municipal Finance • The legislation that is going to be discussed is the following: • The Constitution • The MFMA • The Municipal Structures Act • The Municipal System Act • Guides; Circulars and Policies

  43. The Constitution of the RSA • Chapter 7 deals with issues of Local Government • Deals also with municipal finance • Section 139(1) deals with Provincial supervision of local finance • Principles of mun. finance & admin are addressed by Section 195(1) • Section 214 & 227 deal with matters of raising mun revenue nationally

  44. The Constitution of the RSA • Sections 160(2), 215 & 229 deal with mun budget; revenue & expenditure • Treasury control over mun finance is found in Section 216 • Procurement is dealt with in Section 217 • Municipal loans & guarantees are found in Section 218 & 230

  45. Municipal Finance Management Act • Implementation of MFMA started in 2004 • Principles of MFMA: • Promote sound financial governance • Clarify roles & responsibilities • Ensure strategic approach to budgeting • Introduce modern financial management • Promote cooperative & consultative gov • Promote sustainable local government

  46. Municipal Finance Management Act Chapter 1 • Deals with definitions Chapter 2 • Deals with role of Treasury & Prov Treasuries • Delegation by National Treasury Chapter 3 • Municipal bank accounts • Transfers from Prov & National Gov • Trusts • Relief & others • Cash management: policies; disposal of assets; mun services

  47. Municipal Finance Management Act Chapter 4 • How to prepare the budget • The role of the mayor • 10 months before presentation • Multi yr capital & operating budget • Link with current & future priorities in IDP • Budget implementation • SBDIP within 14 months of budget approval • Responsibilities of MM • Unauthorised expenditures & consequences

  48. Municipal Finance Management Act Chapter 5 • Cooperative governance • Fiscal & financial management • Improve allocations & strengthen plans & budgeting • Pricing policies for bulk resource suppliers • District mun support: for planning; coordinating IDP, budgets, performance reports

  49. Municipal Finance Management Act Chapter 6 • Debt borrowing • Limitation of short/long term debts:s45,s46 • Provisions cover: security for loans: s48 disclosure obligations: s49 issuing guarantees:s50 • Prohibit borrowing in foreign currency:s47,163 • Governance obligations to officials

  50. Municipal Finance Management Act Chapter 7 • Focuses on the mayor • Provides political leadership • Monitor progress • Council oversight on the mayor • Review of IDP & related policies • Ensure compliance with deadlines • Monitor performance • Table reports to council • Approve SDBIP & performance agreements

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