1. Module 7 How to Write an MPAC Report and Resolutions APAC MPAC Training Roll-out 2012 1

2. INTRODUCTION A committee report is the view of the MPAC on matters raised by the Auditor-General as well as other matters identified in the annual report, and normally contains recommendations to the municipality on areas of concern identified. The municipality is obliged to reply to each of the recommendations by providing a considered response, normally within a prescribed period. According to the MFMA, section 32(2) a municipality must recover unauthorised, irregular and fruitless and wasteful expenditure from the person liable unless an investigation by a council committee, in this case MPAC, certifies that the amount is irrecoverable and should be written off. 2

3. WHEN IS THE MPAC REPORT EFFECTIVE The Municipal Public Accounts Committee report will be effective when they: –Reflect the tone of the hearing and the weight of its concerns. –Spell out the committee’s reasoning in a brief summary based on relevant facts, figures & examples –Contain conclusions that are tightly argued and which support specific, realistic recommendations. –Are accurate and are substantially based on the evidence gathered. –Are direct and easy to read. 3

4. THE STRUCTURE OF AN MPAC REPORT The structure of an MPAC report should consist of the following: –Introduction and summary First few paragraphs give essential background Three or four key messages. All conclusions and recommendations should be written in full under same headings as in the body of the report –Main body Under each subheading, provide brief background Provide evidence for the MPAC meeting – meeting transcripts – Conclusions and Recommendations Must be reasoned Must be reasonable Specific (can be followed up by the AG and proof provided of whether they have been implemented or not) 4

5. A CHECKLIST FOR DRAFTING QUALITY REPORTS Use words and phrases to have the impact you want Is the language used direct and easy to read? Use graphics in your MPAC report: –To communicate complex information succinctly –To make the report look more interesting 5

6. DRAFTING MPAC RESOLUTION The following is a process that should be followed in issuing recommendations by the MPAC: –The Council adopts the annual report and forwards it to the MPAC –The AG briefs the MPAC on its audit report on the municipality and/or entity –The MPAC conducts a hearing on the basis of the annual report –The MPAC prepares an Oversight report and make recommendations to the Council –The Council adopts the MPAC recommendations as Council resolutions –The Office of the Speaker communicates the resolution to the municipal or entity management 6

7. THE MPAC FOLLOW-UP PROCESSES The process followed in following up on resolutions is as follows: –The Office of the Speaker communicates the MPAC resolution to the municipal or entity management –The MPAC communicates the MPAC resolution to the relevant mayoral committee for further monitoring –The MPAC communicates with the internal audit division and external audit committee to ensure that it will track progress on implementation internally and report on it in the annual report of municipality or entity –The MPAC follows up on the municipal management or entity to ensure that implementation of resolutions happens within the specified timeframe –The AG reports on the implementation of MPAC resolutions in his/her audit report on the municipality or entity 7

8. CHECKLIST FOR FOLLOW-UP PROCESSES Are the recommendations of the committee unambiguous, e.g. is it clear exactly what is expected, from whom it is expected, and by when? Is the committee report submitted to the appropriate authority within government? Is the report processed and submitted for response as soon as possible? i.e. adopted by the MPAC as soon as possible after a hearing, submitted to the Council and adopted by the Council as quickly as possible, and immediately forwarded to municipal management for a response. Does an effective follow-up diary system exist that records the expected response date, and activates a follow-up action if the deadline is not adhered to? Does a prescribed response-format exist that obliges the respondent to “standardise” responses in such a way that it is clear whether there is full or part agreement with, what the reasons for not agreeing? 8

9. CHECKLIST FOR FOLLOW-UP PROCESSES Aspects to be evaluated could include – –The accuracy of material facts that are practically verifiable –Is the response complete, i.e. were all the concerns raised by the MPAC responded to? –Is the response consistent with previous responses? –At the time of evaluating the responses, an indication should be given to any development that the MPAC should be aware of, which is relevant to the responses received. –Were reasons provided where recommendations were not implemented? –A file note should ensure a Co-ordinated review of all unresolved aspects arising out of the responses during the review of the next audit report. –Action plans should be recommended for implementation – MPAC cannot let issues go which can be corrected to prevent it from being reported on in the future – this totally defeats the object of Clean audit 2014 9

10. IMPLEMENTATION OF MPAC RESOLUTIONS Once the MPAC has reviewed the response to its recommendations it has to decide on appropriate action, which may include: –A further hearing in the case of a very unsatisfactory reply. –Pursuing matter through correspondence in the case of not too serious unsatisfactory responses. –Taking no further action in case of satisfactory responses and recording the matter as “resolved” (This should be communicated to the Mayor and the accounting officer). 10

11. CONCLUSION I would like to conclude with a caption from the words of Amilcar Cabral: ” Every responsible member must have the courage for his responsibilities, exacting from others a proper respect for his work and properly respecting the work of others. Hide nothing from the masses of our people. Tell no lies. Expose lies whenever they are told. Mask no difficulties, mistakes, failures. Claim no easy victories”. 11

12. Accountability Framework in LG 12 e.g. Audit Committee (MFMA s166) e.g MPAC/Oversight Internal Audit Unit (MFMA s165)

13. OVERSIGHT ARRANGEMENTS 13 COMMUNITY COUNCIL Executive Mayor /Mayor/ Committee Municipal Manager Municipal Administration ACCOUNTABILITY Internal Audit Audit Committee MPAC Council Committees S129 of MFMA S79 MStrA Circular 32 of 2006 Council Committee Oversight Responsibility S166 of MFMA o (2) Independent Advisory Body o Functions (a) – (e) o Liaison with Internal audit Unit and AGSA o Composition s166 (4) o Appointed by Council – Chairperson Independent from Council - s166(5) s 165 (1) - Each Municipality must have an Internal Audit Unit s1565(2) – Role and Function May be outsourced if assistance is required – Council determine