• Audit Comittee

    Members of the Shared Audit Committee

    • The External
    • Audit Committee member X4
    • The Municipal Manager
    • Chief Financial Officer
    • Executive Manager: Admin & Corporate Services
    • Executive Manager: Technical Services
    • Executive Manager: Community Services
    • All the Managers within the Municipality

     

    Roles and Responsibilities

     

    Review of Audited Annual Financial Statements (AFS)

     

    • Inspect and confirm that the AFS have been signed by the Accounting Officer on or before the Audit Committee Report;
    • Enquire from Accounting Officer if the AFS have been prepared in accordance with Generally Recognized Accounting Practice (GRAP) as prescribed by the Treasury Regulations and the preparation guide by National Treasury;
    • Evaluate and review the accounting practices in place;
    • Review AFS for abnormal and/or significant variances in the financial statements as compared to the appropriated budget and prior year;
    • Review any new or proposed legislation that may have a material impact on the policies; the financial statements and disclosure thereof and council resolutions compliance thereto;
    • Enquire from management, the Auditor- General and Internal Audit about all outstanding litigation, contingencies and claims and how these matters are reflected in the municipality’s financial statements.

    Review Accounting Policies

       

    • Ensure that the Accounting Policies are as per the policies disclosed in the specimen financial statements issued by the National Treasury.
    • Where there are deviations, ensure that there is evidence of satisfactory consultation with the Office of  Accountant-General regarding the changes;
    • Consider the reasons for the changes in policies, if any. Assess whether changes have been currently dealt with and disclosed in the AFS;
    • Enquire whether these changes are consistent with the required accounting framework and if not, whether National Treasury (Office of Accountant-General) approval has been obtained.

    RESPONSIBILITIES RELATED TO THE INTERNAL CONTROL

    • Consider the effectiveness of the municipality’s system of the internal control, including information technology, security and control.
    • Understand the scope of internal and external auditor’s review of internal control over financial reporting, and obtain reports on significant findings and recommendations, together with management’s responses; and
    • Evaluate whether management is setting appropriate “control culture” by communicating the importance of internal control, risk management and ensuring that all employees have an understanding of their roles and responsibilities.

     RESPONSIBILITIES RELATED TO COMPLIANCE

     

    • Review the effectiveness of the systems for monitoring compliance with laws and regulations and the results of management’s investigation and follow-up (including disciplinary action) of any instances of non-compliance.
    • Review the findings of any examinations by regulatory agencies and any auditor observations; and
    • Obtain regular updates from management and company legal counsel regarding compliance matters.
    • Be satisfied that all regulatory and compliance matters have been considered in the preparation of the financial statements.
    • Review the organization’s assurance programs.
    • Review the impact of new or proposed legislation or governmental regulations. (eg.MFMA, DORA, Corruption Act, etc.)

    RESPONSIBILITIES RELATED TO PERFORMANCE MANAGEMENT

     

    • Review the quarterly report submitted to it by the Internal Audit Activity and management;
    • Review Council’s performance management system and make recommendations in this regard to Council;
    • Assess whether the performance indicators are sufficient;
    • At least twice during a financial year submit an audit report to Council.

    RESPONSIBILITIES RELATED TO RISK MANAGEMENT

     

    • Setting strategic directions with regards to the establishment of Risk Management Strategy.
    • Evaluation of whether management is setting the importance of risk management to ensure that all employees and councilors have an understanding of their roles and responsibilities in this regard.
    • Monitor whether the risk management systems are effective and integrated with IDP objectives

    RESPONSIBILITIES RELATED TO CORPORATE GOVERNANCE

    • Ensure that the code of conduct of the municipality is in writing and that it is communicated to all employees and councilors.
    • Evaluate whether management is communicating the importance of the code of conduct and the guidelines for acceptable and ethical behavior and that a fraud corruption management strategy is compiled and implemented.
    • Review the process for monitoring compliance with the code of conduct.
    • Monitor whether the municipalities’ values are preserved by all.

     REPORTING RESPONSIBILITIES

    • Regular report to the Accounting Officer about committee activities, issues, and related recommendations;
    • Report to Council quarterly about committee activities, issues, and related recommendations;
    • Provide an open avenue of communication between IAA, the external auditors, and management;
    • Review any other reports that the entity issues relating to committee responsibilities;
    • Perform other activities related to this charter as requested by the Accounting Officer;
    • Institute and oversee special investigations as needed;
    • Review and assess the adequacy of the committee charter annually, requesting Accounting Officer’s approval for proposed changes, and ensure appropriate disclosure as may be required by law or regulation;
    • Evaluate the committees own performance on a regular basis and that’s on quarterly basis.
    • Confirm annually that all responsibilities outlined in this charter have been carried out; and
    • Evaluate the committee’s and individual members’ performance on a regular basis.
    • Perform other oversight functions as requested by the councils.

     EVALUATION OF THE PERFORMANCE OF AUDIT COMMITTEE

     

    Accounting Officer and Council should evaluate the performance of Audit Committee on an annual basis.

    The chairperson of the Audit Committee should evaluate the performance of individual committee members and the Council should evaluate the performance of the Chairperson.

    The result of the performance should be reviewed by the Audit Committee and Council in order to determine what actions, if necessary, are to be taken.

    Members who do not meet the performance assessment and criteria should be removed from the committee.

  • Risk Management Committee

    1. COMPOSITION OF THE RISK MANAGEMENT COMMITTEE

     

    • External/ Independent Chairperson
    • Chief Risk Officer provides secretariat services and expert advice;
    • A member of the Audit Committee
    • Divisional Manager: ICT
    • Divisional Manager: Performance Management
    • Divisional Manager: IDP
    • Legal Advisor
    • Chief Audit Executive will provide advisory services;
    • Other members of management or any other person who may be co-opted to provide specialist skills and advice inclusive of stakeholder departments such as the Provincial Treasury, Provincial Department Co-operative Governance and Traditional Affairs and the District

     

    1. ROLES AND RESPONSIBILITIES

     

    The duties of the Committee shall be to:

    • Review the Risk Management Policy and Strategy and recommend for approval by the Accounting Officer;
    • Review the risk appetite and tolerance and recommend for approval by the Accounting Officer;
    • Review the institution’s risk identification and assessment methodologies to obtain reasonable assurance of the completeness and accuracy of the risk register;
    • Evaluate the effectiveness of mitigating strategies to address the material risks of the Institution;
    • Report to the Accounting Officer any material changes to the risk profile of the Institution;
    • Evaluate the effectiveness of the implementation of the Fraud Prevention Policy and related fraud matters;
    • Review any material findings and recommendations by assurance providers on the system of Risk Management and monitor that appropriate action is instituted to address the identified weaknesses;
    • Develop goals, objectives and key performance indicators to measure the effectiveness of Risk Management activity;
    • Set out the nature, role, responsibility and authority of the Risk Management function within the Institution for approval by the Accounting Officer and oversee the performance of the Risk Management function;
    • Provide proper and timely reports to the Accounting Officer on the state of Risk Management, together with aspects requiring improvement accompanied by the Committee’s recommendations to address such issues;
    • The Committee through its Chairperson shall report to the Audit Committee on matters of Risk Management;
    • The Risk Management, Anti-Corruption and Anti-Fraud Committee should note the internal audit plan after it has been drafted in order to understand the areas covered by it in terms of risks as per the risks registers
  • IT Steering Committee

    Members of the ICT Steering Committee

    • The External
    • Divisional Manager Information and Communication Technology.
    • Executive Manager Administration and Corporate Services.
    • Executive Manager Community Development Services.
    • Executive Manager Technical Services.
    • Chief Financial Officer.
    • Chief Internal Auditor.
    • Chief Risk Officer.
    • Divisional Manager Organizational Performance Management Systems.

     

    Roles and Responsibilities

     

    • Ensure the implementation of the ICT Charter, including the defined ICT governance structures and ICT Governance Policy Framework.
    • Ensure that ICT Principles, Policies, Procedures, and Standards are defined,

    implemented and approved.

    • Ensure that the municipality has adequate business resilience arrangements in

    place for ICT Disaster Recovery.

    • Ensure that appropriate processes are followed for the identification,

    assessment and management of ICT Risks.

    • Ensure that a process is in place to identify and position strategic ICT initiatives and services which will best contribute to the achievement of municipal objectives and are agile and adaptive enough to support changes in the municipal strategy.
    • Review and approve major decisions relating to General ICT Management and

    Administration, these include ICT human resources, ICT financial management and marketing of ICT services to the other business units (business relationship management).

    • Ensure research and innovation in terms of ICT trends and emerging technologies are performed.
    • Review and approve major decisions affecting application management.
    • Review and approve major decisions affecting ICT operations.
    • Ensure the implementation of good governance principles to be applied for the acquisition of ICT goods and services.
    • Ensure that appropriate project management principles and frameworks are applied to all significant projects.
    • Ensure compliance with ICT Security related laws and related rules, codes, and standards.
  • Municipal Public Account Committee

    1. INSTITUTIONAL CONTEXT

    MPAC is established in terms of section 79 of the Municipal Structures Act and performs an oversight function on behalf of council and is not a duplication of other committees of council, such as the Finance Committee or that of the Audit Committee.

    MPAC undertake and manage similar functions and responsibilities for municipalities, as undertaken by the Standing Committee on Public Accounts in the national and provincial legislatures, except for certain powers regarding subpoena of individuals. In the case of any irregular expenditure or any fruitless and wasteful expenditure incurred by the municipality, the MPAC will have the right to call upon the accounting officer of the municipality or the chairperson of the committee to appear before it to provide information or clarity.

    The MPAC engage directly with the public and consider public comments when received and will be entitled to request for documents or evidence from the accounting officer of a municipality.

    MPAC can request the support of both the internal and external auditors (advisory) when necessary. It should be noted that the standard rules for the council apply to MPAC. The committee shall have permanent referral of documents as they become available relating to:

    1. In year reports of the municipality.
    2. Financial statements of the municipality as part of the committee’s oversight process.
    • Audit opinion, other reports and recommendations from the audit committee.
    1. Information relating to compliance in terms of section 128 and 133 of MFMA.
    2. Any other audit report from the municipality.
    3. Performance information of the municipality.
    • Information in respect of any disciplinary action taken in terms of the MFMA where it relates to an item that is currently serving or has served before the committee.
    1. FUNCTIONS OF MPAC

    To consider and evaluate the contents of the annual report and to make recommendations to council when adopting an oversight report on the annual report.

    To promote good governance, transparency, and accountability on the use of municipal resources.

    To recommend or undertake any investigation in its area of responsibility, after reviewing any investigation report already undertaken by the municipality or the audit committee.

    In order to assist with the conclusion of matters that may not be finalized, information relating to past recommendations made on the annual report, must be reviewed. This relates to current in-year reports, including the quarterly, mid-year and annual report.

    To examine the financial statements and audit reports of the municipality, and in doing so, the committee must consider improvements from previous statements and reports and must evaluate the extent to which the audit committee’s and the auditor general recommendations have been implemented.

    To perform any other functions assigned to it through a resolution of council within its area of responsibility.

    1. ADMINISTRATIVE SUPPORT

    For the MPAC to effective in executing its functions, council must ensure that the MPAC is supported by officials to coordinate and undertake research activities by the committee work program.

    1. COMPOSITION AND MEMBERSHIP

    The MPAC, similar to other committees of council should comprise solely of councilors appointed by resolution of a full council meeting. However, the committee may invite representatives of the community and co-opt members of the public who have expertise in relevant specific fields to assist and advise in the deliberations when the need arise. These reps will have no voting rights as they are not elected councilors.

    The MPAC shall comprise of councilors excluding any councilor who is serving as Executive Mayor or Deputy Executive Mayor, Mayor or Deputy Mayor, Speaker, Chief Whip, a member of Mayoral Committee, a member of the Executive Committee. Where the municipality has a sufficient number of councilors, councilors serving on the MPAC should preferably not serve in other Committees of Council to minimize possible conflict of interest.

    The actual size of the MPAC will be determined by the number of councilors in the municipality.

    When a councilor resigns or is transferred from the committee, the resignation must be in writing and council must appoint a replacement by resolution at the next scheduled full council meeting.

    1. CHAIRING OF MPAC

    The chairperson of MPAC is appointed through council resolution.

    When appointing the chairperson of the committee, council must take into consideration the requirements of transparency, ethical behavior, and general good governance prescripts.

    In deciding on the appointment of the chairperson, council may consider appointing councilors from parties other than the majority parties in council.

    The council may consider making the position of chairperson of the committee full-time.

    1. MPAC WORK PROGRAMME

    MPAC develops its work program annually and link such program to the overall planning cycle of council and conclude with the evaluation of the annual report and the recommendations to council when adopting the oversight report on the annual report.

    MPAC annual work program must be approved by council.

    1. ATTENDANCE

    A minimum of four meetings in a financial year must be held or as may be necessary in accordance with the approved work program. The meetings of MPAC should be included in the annual calendar of council and the notice requirements should be like those of other committees of council taking into consideration the timeframes in the MFMA for preparation and adoption of the oversight report on the annual report.

    1. REPORTING

    The MPAC will report to council on the activities of the committee, include a report detailing its activities of the preceding and current financial years, the number of the meetings held, the membership of the committee and key resolutions taken in the annual report.

    The committee must discuss and adopt its report for council in accordance with the procedures for tabling matters in council defined in the standing rules of council.

    The MPAC should report to council at least quarterly and may bring items before council as an when necessary.

    1. MONITORING

    The committee develops a monitoring mechanism in line with the approved work program to determine if actions have taken to implement its recommendations.

    The responses to reports are to be provided to the MPAC as soon as possible after the date of the resolution together with the recommendations to which they relate.

  • Mayoral Committee

  • Section 79

  • Section 80