02/07/2015 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME 1 FINANCE CHAIRPERSONS’ FORUM TYPES OF COMMITTEES

02/07/2015 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME 2 Types of Committees Mayoral Committee Executive Committee Committees of Council (“Section 79”) Portfolio Committees (“Section 80”) Oversight Committee Municipal Public Accounts Committee Audit Committee

02/07/2015 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME 3 Mayoral Committee Established in terms of Municipal Structures Act, section 60 Appointed by, and responsible to, the Executive Mayor Members serve at the pleasure of, and during the term of, the Executive Mayor

02/07/2015 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME 4 Mayoral Committee cont’d The Mayoral Committee has only two legislated powers: The right to exist The right to be consulted Mayoral Committees are only as effective as the Executive Mayor allows them to be

Executive Committee Established in terms of Municipal Structures Act, section 43 Members are elected by, and responsible to, the Municipal Council Members serve at the pleasure of the Council Meetings are called by the Mayor, and chaired by the Mayor 02/07/2015 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME 5

Executive Committee cont’d EXCO is the principal committee of Council Receives reports from other committees, and then forwards those reports, with its recommendations, to Council Functions and powers are set out in Municipal Structures Act, section 44 02/07/2015 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME 6

Committees of Council Established in terms of Municipal Structures Act, section 79 Established by, and responsible to, Council May include members from outside the Council Functions and procedures are determined by Council 02/07/2015 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME 7

Committees of Council cont’d Council may delegate duties & powers to Committee Council must appoint the chairperson Council may dissolve a committee at any time 02/07/2015 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME 8

Portfolio Committees Established in terms of Municipal Structures Act, section 80 Committees are established by Council, and members are appointed by Council, but do not report to Council Portfolio Committees report to the Executive Mayor or Executive Committee 02/07/2015 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME 9

Portfolio Committees cont’d The Executive Mayor or the Executive Committee -- Appoints the chairperson for each committee from among the Mayoral Committee or Executive Committee May delegate powers & duties to the Committee May vary or revoke any decision of the Committee 02/07/2015 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME 10

Oversight Committee Established in terms of Municipal Finance Management Act, section 129, and Municipal Structures Act, section 33 and section 79 Committee cannot include Executive Mayor or Mayoral Committee members or Executive Committee members Committee can include representatives from the community 02/07/2015 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME 11

Oversight Committee cont’d Oversight Committee has only one task – to review the Annual Report and prepare a draft Oversight Report for Council All meetings of the Oversight Committee must be open to the public Representatives from the Auditor-General must be invited to each meeting The Municipal Manager must attend each meeting 02/07/2015 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME 12

Oversight Committee cont’d The sole function of the Oversight Committee may be performed by the Municipal Public Accounts Committee 02/07/2015 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME 13

02/07/2015 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME 14 Municipal Public Accounts Committee MPAC’s are contemplated by MFMA, section 129 MPAC’s are established in terms of the Municipal Structures Act, section 79 National Treasury may issue guidelines concerning the functioning and composition of the MPAC (MFMA, section 79 (4)) Guidelines are only binding if adopted by Council (MFMA, section 79 (5))

MPAC’s cont’d Responsible to Council Membership, and Chairperson, are appointed by Council Resolution Members should not serve on any other committee Eligibility set out in National Treasury Guideline 02/07/2015 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME 15

MPAC’s cont’d MPAC has only one mandatory responsibility – to prepare a draft Oversight Report Any other responsibilities must be assigned by Council, through the adoption of a Terms of Reference (Charter) Council must also approve an annual Work Programme 02/07/2015 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME 16

MPAC’s cont’d “MPAC will undertake and manage similar functions and responsibilities for municipalities, as undertaken by the Standing Committee on Public Accounts in the national and provincial legislatures” 02/07/2015 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME 17

Audit Committee Established in terms of Municipal Finance Management Act, section 166 This is a mandatory committee The Terms of Reference, or Charter, must be approved by Council The Audit Committee is an independent advisory body Appointed by, and responsible to, Council Cannot include any Councillors 02/07/2015 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME 18

Audit Committee cont’d Must consist of at least three members Chairperson appointed by Council May include officials Must meet at least four times per year Has access to all financial records and other relevant information of the municipality 02/07/2015 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME 19

Audit Committee Functions Advise the Council on a range of issues Review the Annual Financial Statements Carry out such investigations into the financial affairs of the municipality as requested by Council Respond to the Council on any issues raised by the Auditor-General in the audit report 02/07/2015 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME 20

THANK YOU FOR YOUR ATTENTION ?? Questions ?? Comments 02/07/2015 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME 21