municipal oversight: futshane consulting imfo audit & risk indaba 2015 20 – 22april 2015:...

MUNICIPAL OVERSIGHT: FUTSHANE CONSULTING

IMFO Audit & Risk Indaba 201520 – 22April 2015: Olive Convention Centre, Durban

Institute of Municipal Finance Officers & Related Professions

Overview

Accountability framework Oversight Report: Contents Oversight Report vs Annual report Legislative mandate: Annual report contents The basics: Common challenges The basics: Quick wins


Accountability Framework

Basic understanding



Mayor• Policies• Budgets• Outcomes• MM performance

Council• Approving budget• Approving policies

MM• Implementation• outputs

CFO and Senior Managers• Financial management• Operational

management

Community

OVERSIGHT

OVERSIGHT

Oversight report introduction



Oversight report

Annual ReportSDIBP

IDP

Audit Report

Community feedback

Oversight Report

What is an oversight report

Oversight Report

The Oversight Report follows consideration and consultation on the Annual Report and is considered to be a report of the municipal council to the community disclosing the level of success or otherwise, obtained with meeting the priority needs and stated desires of the community as contained in the IDP


Contents

Oversight Report

The Oversight Report must include a statement whether the Council: Has approved the annual report, with or without

reservations; has rejected the annual report; or has referred the annual report back for revision of those

components that can be revised.


Scrutiny of Annual report

Oversight Report

S46 of MSA 1. A municipality must prepare for each financial year an

annual report consisting of : (a) a performance report reflecting :-

i) the municipality’s and any service provider’s performance during that financial year, also in comparison with targets of and with performance in the previous financial year. (ii) the development and service delivery

priorities and the performance targets set by the Municipality for the following financial year; and


Scrutiny of Annual report

Oversight Report

(iii) Measures that were or are to be taken to improve performance

(b) an audit on financial statements and the report on audit on the audit performed in terms of sec 45(b) and

(c) any other reporting requirements in terms of other applicable legislation.

2. Any Municipality must table its annual report within one month of receiving the audit report in sec (1) ( c)


Balance scorecard

Oversight Report


KPA

KPI 1

Baseline Target Actual Comments

KPI 2

Baseline Target Actual Comments

The Basic

Common Challenges

The basics

SMART Principles EG:

“Road A will be constructed by the end of February 2015” “ 100 000 job opportunities are going to be created by the

end of the financial year” “R 2mill to be spent on the registration of indigents by

June 2015” Explaining deviations Submitting report timeously Committee setup – oversight committee


Quick wins

The basics

The oversight report is responsibility of committee Structure of committee Who should attend Purpose of the committee Agenda of committee Thorough review of IDP/SDBIP Service delivery tracked ‘’Local government exists to serve the people. That is the

bottom line,”-President Zuma “Municipalities must take more decisive action to involve

communities and community organizations in the matters of local government.’’-President Zuma


Quick wins

The basics

Regular and transparent community feedback Assess root cause of challenges Assess action plan to remedy deficiencies Guide the executive/hold them accountable


Any Questions

Lerato Futshane

About the Presenter


Position Managing Director

Futshane Consulting

Experience Lerato has 7 Years of auditing and Financial management experience and is the lead director at Futshane Consulting During his career he has accumulated a wealth of knowledge which has helped him master accounting and auditing. As part of

Futshane Consulting he ahs been involved in various public sector projects across the country ranging from asset management to revenue enhancement.

He is a Registered Auditor which has been exposed to both public and private sector has been exposed to different size entities in different industries, his exposure includes:

Municipalities SOE’s Stock brokering companies Dual listed entities Major Bank Pension Funds Medical Aid Funds Non-profit organisation (Section 21 company) Investment companies Small Businesses

Lerato also has a strong technical Financial Accounting background which he developed while working as a Senior Lecturer at Wits University. This has allowed him to pursue his passion of developing the economy through education and skills transfer.

Qualifications BCompt (Hons) Chartered Accountant (South Africa) Registered Auditor Outcomes-based assessor certificate

Abdul Chiwalo

About the Presenter


Position Manager

Futshane Consulting

Experience Abdul has 5 Years of auditing and Financial management experience and is the Manager at Futshane Consulting

During his career, he has gained extensive experience in the audit and accounting professional working in the private and public sector and has a deep understanding of the issues and challenges facing these sectors.

His exposure to both public and private sector includes following: SOE’s Non-profit organisation (Section 21 company) Investment companies Small Businesses

Through his involvement in the public sector, he has taken a keen interest in municipal administration especially the following areas:

Asset management Financial reporting Revenue enhancement

Qualifications BSc (Hons) in Accounting Certified Chartered Accountant (ACCA)

Thank You!


municipal oversight: futshane consulting imfo audit & risk indaba 2015 20 – 22april 2015:...

Documents

oversight report oversight

performance report

municipal oversight

basic slide

municipal council

accountability framework

financial statements

following financial