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
Institute of Municipal Finance Officers & Related Professions
Basic understanding
Accountability Framework
Institute of Municipal Finance Officers & Related Professions
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
Accountability Framework
Institute of Municipal Finance Officers & Related Professions
Oversight report
Annual ReportSDIBP
IDP
Audit Report
Community feedback
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
Institute of Municipal Finance Officers & Related Professions
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.
Institute of Municipal Finance Officers & Related Professions
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
Institute of Municipal Finance Officers & Related Professions
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)
Institute of Municipal Finance Officers & Related Professions
Balance scorecard
Oversight Report
Institute of Municipal Finance Officers & Related Professions
KPA
KPI 1
Baseline Target Actual Comments
KPI 2
Baseline Target Actual Comments
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
Institute of Municipal Finance Officers & Related Professions
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
Institute of Municipal Finance Officers & Related Professions
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
Institute of Municipal Finance Officers & Related Professions
Lerato Futshane
About the Presenter
Institute of Municipal Finance Officers & Related Professions
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
Institute of Municipal Finance Officers & Related Professions
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)
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