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Introduction

Select Committee on Cooperative Governance and Traditional Affairs Operational Response Plan Audit Outcome of Municipalities 16 August 2011. Introduction. Strategic Plan Operational Structure and other key Stakeholders Support Programme Audit Action Plans. 2 2. Strategic Plan.

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Introduction

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  1. Select Committee on Cooperative Governance and Traditional AffairsOperational Response PlanAudit Outcome of Municipalities16 August 2011

  2. Introduction • Strategic Plan • Operational Structure and other key Stakeholders • Support Programme • Audit Action Plans 22

  3. Strategic Plan • Legislative Mandates • Chapter 13 of Constitution - PFMA, MFMA, Budget, Divisions of Revenue, Intergovernmental Fiscal Relations, transparency and effective management of financial and fiscal resources • Public Finance and Budget Management • Intergovernmental Policy and Planning • Infrastructure • Budget Analysis • Conditional Grant monitoring • Financial Systems and Accounting • PFMA and MFMA • Accounting Support and Reporting • SCM, Internal Audit and Risk Management • Technical Support • Financial Management Grant • Technical Assistance 33

  4. Operational Structures • Improve ability to offer guidance and support through effective coordination, monitoring and reporting • MFMA Coordinating Structure ( NT, DCOG, PT, LG, SALGA, AG) – meet quarterly and update progress on all MFMA related activities • Provincial Accountant-General Forums • Municipal Regional MFMA CFO Forums (Chaired by PT) • Provincial OPCA Committees focusing on audit outcomes • Assist with audit action plans, monitor audit action plans • Structure made up of representatives from Provincial Treasuries and Provincial LG departments • Regular meetings with Office of Auditor-General 44

  5. MFMA & FM Support • Support to municipalities on a wide range of MFMA financial management reforms • Budgeting, Reporting, AFS, AR, SCM, Internal Audits, Risk Management, compliance • For macro economic, fiscal and operational purposes municipalities ito MFMA implementation have been allocated differently - • Largest 17 non delegated municipalities report directly to NT while the rest report to PT (consolidated reports are shared) • Officials from NT and PT render direct support, where resources allow • Further support rendered through Technical Assistance Programme - MFIP Advisors - currently 67 municipalities • Conditional Grant support rendered to all municipalities • NT and DCoG share information on a regular basis 55

  6. MFMA Support • MFMA Helpdesk facility used for all enquiries • MFMA Guides and Circulars • AFS Templates, Accounting Policies, Asset Registers, Audit File, SCM, Banking and Cash Management, Budgeting, Oversight, MPAC • Training • Asset Management, Preparation of AFS, Budget • FM minimum competencies – NT, 42 accredited service providers, PALAMA, SAICA • NT Support Teams geared for 17 large municipalities • MFIP TA Advisors supporting 67 municipalities • 1300 FM graduate interns appointed in municipalities • Outcome 12 - Implement System of Delegations on FM, undertake FMCMM development and rollout 66

  7. Support Plans - FMG • 263 municipalities have submitted FMG Support Plans addressing MFMA implementation • Follow-up made with 15 municipalities to confirm FM support plans • Support plans monitored consistent with DORA requirements • NT and PTs to monitor the implementation of the support plans as confirmed with municipalities 77

  8. Support Plans – FMG • Appointment of municipal officials in BTO • Appointment and training of Interns • Appointment of Internal Audit officials and Audit Committee • Training • Minimum Competency levels • Supply Chain Management • Development of FM policies • Upgrading or acquisition of FM Systems to automate in-year reporting, management revenue and expenditures • Updating Municipal Asset Registers • Compilation of AFS and undertake GRAP Conversions • Compilation of Audit Action Plans • Preparation and Implementation of Financial Recovery Plan 88

  9. STATUS OF ACTION PLANS – OPCA 2014 99

  10. Conclusion • Programme of support for FM established • National Treasury, Provincial Treasuries working together with Depart of Cooperative Governance, SALGA and AG • Weaknesses identified in Audit Outcomes also inform support and action plans • Major challenges remain wrt municipal capacity, readiness to report on service delivery performance information - may impact on achievement of 2014 outcome targets • Conditions of all support; • must be absorbed by municipal officials for continuous improvements, • appointment of MM, qualified CFOs, and all FM graduate interns once training programme completed • Municipalities are encouraged to replicate similar capacity strategies for all service delivery functional areas 1010

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