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FINANCE CHAIRPERSONS’ FORUM

FINANCE CHAIRPERSONS’ FORUM. TYPES OF COMMITTEES. Types of Committees. Mayoral Committee Executive Committee Committees of Council (“Section 79”) Portfolio Committees (“Section 80”) Oversight Committee Municipal Public Accounts Committee Audit Committee. Mayoral Committee.

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FINANCE CHAIRPERSONS’ FORUM

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  1. FINANCE CHAIRPERSONS’ FORUM TYPES OF COMMITTEES 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 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 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 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME

  5. 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 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME

  6. 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 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME

  7. 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 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME

  8. 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 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME

  9. 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 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME

  10. 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 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME

  11. 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 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME

  12. 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 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME

  13. Oversight Committee cont’d • The sole function of the Oversight Committee may be performed by the Municipal Public Accounts Committee 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)) MUNICIPAL FINANCE IMPROVEMENT PROGRAMME

  15. 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 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME

  16. 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 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME

  17. 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” MUNICIPAL FINANCE IMPROVEMENT PROGRAMME

  18. 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 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME

  19. 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 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME

  20. 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 MUNICIPAL FINANCE IMPROVEMENT PROGRAMME

  21. THANK YOU FOR YOUR ATTENTION ?? Questions ?? Comments MUNICIPAL FINANCE IMPROVEMENT PROGRAMME

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