Gauteng Speakers Forum Strengthening MPACS Support

STANDING COMMITTEES ON PUBLIC ACCOUNTS 30 MAY 2023

PRESENTATION OUTLINE Introduction Background Projected Support For MPACS for 2023/24 Financial Year Roles of MPACS (Council Delegated Function) 2

Introduction During the Month of May 2023, the Standing Committee on Public Accounts(SCOPA) of Gauteng Legislature requested the Speaker of Gauteng Legislature to delegate a representative to deliver a presentation on:- Perspectives of Gauteng Speakers Forum on strengthening and supporting Oversight on Public Financial Management, Governance and Accountability in Gauteng Municipalities: The Role of Municipal Public Accounts Committees The invitation of SCOPA to Speaker for a session of May 2023, intensifies collaborative approach on scrutiny of public expenditure management between Gauteng Legislature & Municipal Councils. This collaborative approach is further anchored on -adopted MoU Between GPL & Municipal Councils for the duration of the current electoral term of local government (2021-2026) - Chapter 3 of the Constitution Retrospectively, during a similar session of SCOPA held 09 June 2022- The Gauteng Speakers Forum was requested to outline its support for MPACS, 3

Background Gauteng Speakers Forum has a standing collaborative engagement with SCOPA/MPACS- Standing Committees on Public Accounts are at the epicenter for legislative oversight on financial & non-financial performances of executive authorities traversing tiers of governance Efficiencies of these committees have implications for accelerated or stagnant service delivery, These committees are the vanguard for ethical and good governance, legislative compliance and etc. During the session of SCOPA/MPACS held in June 2022- The Speakers Forum committed to project 4 quarterly capacity building initiatives for MPACS. 4

Projected Support For MPACS for 2023/24 Financial Year (continue Following the resolution of the SCOPA session held in June 2022- Furthermore, provision has been made by Gauteng Speakers Forum to capacitate MPACS by providing trainings which will be rolled-out in the new electoral term of Local Government. Follow-up to be made after the elections , The Gauteng Speakers Forum projected 5 quarterly sessions to be rolled out in the 2022/23 (1 ) 23/24 FY (4) The first session was held on 04 October 2022, at O.R Tambo Government Precinct, Ekurhuleni Metropolitan Municipal Council. The following resolutions were made 5

Projected Support For MPACS for 2023/24 Financial Year. Session held on 04 October 2022, at O.R Tambo Government Precinct, Ekurhuleni Metropolitan Municipal Council resolved; Decisions: Item Date Responsibility 1st week of Dec 2022 The session also resolved that a follow-up session should be convened in to deliberate on matters such as adoption of Gauteng Clean Audit Roadmap. Gauteng Legislature/ Municipal Councils Municipal Councils The session resolved that MPACS/Finance Committees should further deposit inputs under each item below, these inputs will be consolidated into a Gauteng Province Roadmap for Clean Audit: 30 October 2022 Assessment of Performance Reports Oversight on UIF&W expenditure Supporting AGSA on Mis Ensuring Consequence Management Taking up Recommendations by AGSA Approach to Disclaimers and Qualified Audits Cooperation: Speaker s and MPAC Items by Municipal Experts: Deferred to the next session Deferred to the next session Gauteng Speakers Forum Oversight on performance reporting and compliance with policies & legislation Oversight on revenue collection and implementation of post-Covid recovery measures Oversight on grant allocations expenditure management Oversight on irregular expenditure Consequence management 6

Projected Support For MPACS for 2023/24 Financial Year (Continued. Items Deferred during a Session held on 04 October 2022, at O.R Tambo Government Precinct, Ekurhuleni Metropolitan Municipal Council, Deferred to the next session Gauteng Speakers Forum Items by Municipal Experts: Deferred to the next session Oversight on performance reporting and compliance with policies & legislation Oversight on revenue collection and implementation of post-Covid recovery measures Oversight on grant allocations expenditure management Oversight on irregular expenditure Consequence management 7

Projected Support For MPACS for 2023/24 Financial Year The following training interventions are projected: Q2 2023/24 FY Implementing consequence management Improve Oversight on revenue collection vs implementation of post-Covid recovery measures. Q3 2023/24 FY Improve Oversight on irregular expenditure. Improve Oversight on grant allocations expenditure management. Q4 2023/24 FY Taking up Recommendations by AGSA Approach to Disclaimers and Qualified Audits 8

Role of MPACS conti Gauteng Speakers Forum (GSF) is not prescriptive to roles of MPACS, the Forum recognizes the roles of MPACS as provided for under s59 of the Systems Act, SALGA has also published guidelines for establishment of MPACS in 2012, National Treasury & COGTA has also published MPAC Toolkit 9

Roles of MPACS S59 Municipal Systems Act conti .. MPACS are delegated function of Council Delegations 59. (1) A municipal council must develop a system of delegation that will maximise administrative and operational efficiency and provide for adequate checks and balances, and, in accordance with that system, may a) delegate appropriate powers, excluding a power mentioned in section 160(2) of the Constitution and the power to set tariffs. to decide to enter into a service delivery agreement in terms of section 76(b) and to approve or amend the municipality s integrated development plan, to any of the municipality s other political structures, political office bearers, councilors'. or staff members: (b) instruct any such political structure. political office bearer, Councillor, or staff member to perform any of the municipality s duties: and (c) withdraw any delegation or instruction 10

Roles of MPACS S59 Municipal Systems Act conti .. 2) A delegation or instruction in terms of subsection ( 1 ) (a) Must not conflict with the Constitution, this Act or the Municipal Structures Act; (b) Must be in writing: ( C) Is subject to any limitations. conditions and directions the municipal council may impose: (d) May include the power to sub-delegate a delegated power: (e) Does not divest the council of the responsibility concerning the exercise of the power or the performance of the duty; and (f). Must be reviewed when a new council is elected or, if it is a district council, elected and appointed. 11

Roles of MPACS S59 Municipal Systems Act conti .. 2) A delegation or instruction in terms of subsection ( 1 ) (a) Must not conflict with the Constitution, this Act or the Municipal Structures Act; (b) Must be in writing: ( c) Is subject to any limitations. conditions and directions the municipal council may impose: (d) May include the power to sub-delegate a delegated power: (e) Does not divest the council of the responsibility concerning the exercise of the power or the performance of the duty; and (f). Must be reviewed when a new council is elected or, if it is a district council, elected and appointed. 12

Roles of MPACS S59 Municipal Systems Act Delegations The municipal council (a) in accordance with procedures in its rules and orders, may, or at the request in writing of at least one quarter of the councilors'. must, review any decision taken by such a political structure, political office bearer, councilor or staff member in consequence of a delegation or instruction, and either confirm, or revoke the decision subject to any rights that may have accrued to a person; and (b) May require its executive committee or executive mayor to review any decision taken by such a political structure, political office bearer, councilor or staff member in consequence of a delegation or instruction 13

Delegated Functions as per s59 conti MPACS are delegated the authority to interrogate the following documents and to make recommendations to the municipal council in accordance with the terms of reference of the committee: Unforeseen and unavoidable expenditure; Unauthorized, irregular or fruitless and wasteful expenditure; SDBIP; Monthly budget statements; Mid-year budget and performance assessment; Mid-year budget and performance assessment of municipal entities; Disclosures concerning councilors, directors and officials; 14

Delegated Functions as per s59 conti Annual financial statements; Annual report; Issues raised by the A-G in the audit reports; The appointment of the audit committee; Disciplinary steps instituted in terms of the MFMA; The review of the IDP post elections; The annual review of the IDP; Performance management plan; The draft annual budget with reference to the approved IDP; and Declaration of interest forms submitted by councillors. 15

Delegated Functions of MPACS END 16