Background

The Council is charged with the responsibility to oversee the overall performance of the municipality, as required by the Constitution, the Municipal Finance Management Act (MFMA), Municipal Systems Act (MSA) and Municipal Structures Act.

The Municipal Public Accounts Committee (MPAC) (to be established as determined by the Standing Rules of the Council) is the mechanism through which the Council exercises oversight, monitoring and evaluation over the financial and non-financial performance information in accordance with prescribed legislation and corporate governance principles.

The roles and responsibilities of council should always be carried out with a clear distinction between oversight and interference in administration, as defined in the Municipal Finance Management Act, 2003, Act 56 of 2003 (MFMA), section 52 (b) and 103 respectively as well as in the Code of Conduct for Councillors, defined in Schedule 1 of Municipal Systems Act, No.32 of 2000.

Section 129(4) of the MFMA further provides for the guidance on the manner in which municipal councils should consider annual reports and conduct public hearings, and the functioning and composition of any public accounts or oversight committees established by the council to assist it to consider an annual report.

MFMA Circular 32 provides earlier guidance on the oversight process that councils must follow when considering the annual report and producing an Oversight Report.

Purpose

The National Treasury Guidelines on Establishment of Municipal Public Accounts Committee issued on the 17th August 2014 stipulates that the committee:

• must develop its work programme annually
• must link such programme to the overall planning cycle of council
• programme must conclude with the evaluation of the annual report and
• the recommendations to Council when adopting the Oversight Report on the Annual Report

Stakeholder Description & Analysis

Internal role players
Office of the Speaker

• Receives the MPAC reports.
• Ensure MPAC interfaces with the other committees of council where relevant

Municipal council

• Appoints the MPAC
• Appoints the MPAC Chairperson
• Approves the annual work programme of the committee.
• Receives MPAC’s reports through the Speaker
• Deliberate on the recommendations from the MPAC
• Evaluate the performance of MPAC on an annual basis
• Support the MPAC administratively

Executive Committee and Portfolio Committees

• Executive Committee Members and Budget & Treasury Portfolio Members have standing invitations which may be extended to them to be in attendance at the Municipal Public Accounts Committee meetings.

Municipal Public Accounts Committee

• Performs an oversight function on behalf of council
• Engage directly with the public
• Consider public comments
• Consider and evaluate the content of the annual report and to make recommendations to Council when adopting an oversight report on the annual report
• Reviewed in-year reports, including the quarterly, mid-year and annual reports
• Examine the financial statements and audit reports of the municipality and municipal entities
• Evaluate the extent to which the Audit Committee’s and the Auditor General’s recommendations have been implemented
• Promote good governance, transparency and accountability on the use of municipal resources
• Recommend or undertake any investigation in its area of responsibility, after reviewing any investigation report already undertaken by the municipality or the Audit Committee; and
• Perform any other functions assigned to it through a resolution of council within its area of responsibility
• Request the support of Internal and/or external Auditors for advisory when necessary for any function assigned through council resolution

Internal Audit

• Advise on the technical content of MPAC reports

Senior Management Team & Staff

• Attend all meetings of the Committee, depending on the content and detail of the agenda

External Role Players

Audit Committee

• Advises council, political office-bearers, the accounting officer and the management of the municipality on matters related to internal control, internal audits, risk management accounting policies;
• Advises council on the adequacy reliability and accuracy of financial reporting and information, performance management, effective governance compliance with the MFMA and the Division of Revenue Act and other local government applicable legislation.

Office of the Auditor-General

• Attend MPAC meetings and hearings as and when it is required
• Advise on the technical content of MPAC reports.

The Community

• Participate in the public hearings.
• Provide comments on matters referred to the public.

The MPAC is also empowered to invite persons with relevant experience both internally and externally to attend its meetings as it deems fit