REPORT OF OVERSIGHT COMMITTEES REPORTING DIRECTLY … Calendar... · 2015-08-31 · j) Oversight...

REPORT OF OVERSIGHT COMMITTEES REPORTING DIRECTLY TO THE COUNCIL allowed in terms of Section 8(1)(f)(b)(i) of the Rules and Orders for consideration by the Council Agenda of the Council Meeting of the CITY OF TSHWANE METROPOLITAN MUNICIPALITY which will be held in the Council Chamber, Sammy Marks Conference Centre, cnr Madiba (Van der Walt) and Lilian Ngoyi (Vermeulen) Streets, Pretoria, on THURSDAY, 27 AUGUST 2015, at 10:00 to consider the matter as set out in the agenda hereafter.

PAGES M. FROM THE SECTION 79 STANDING COMMITTEE:

PUBLIC ACCOUNTS: 19 AUGUST 2015 ………..…..….................. 4 – 53 AWMK MOSUPYOE-LETSHOLO SPEAKER 20 August 2015

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F. REPORT TO COUNCIL

The Speaker, in terms of Section 8(1)(f)(b)(i) of the Rules and Orders, proposes to Council that the reports contained in this agenda, from the Meeting of the Section 79 Standing Committee: Public Accounts held on 19 August 2015, be submitted for consideration, and subsequently requests the Chair of Chairs, Councillor RJ Kekana, to present the report to Council.

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COUNCIL AGENDA: CITY OF TSHWANE METROPOLITAN MUNICIPALITY: 27 AUGUST 2015 REPORT TO COUNCIL INDEX (The recommendations appear on the pages indicated in brackets)

Pages M. FROM THE SECTION 79 STANDING COMMITTEE:

PUBLIC ACCOUNTS: 19 AUGUST 2015 1. Office of the Speaker

Annual performance report of the Section 79 Standing Committee: Public Account (MPAC) for 2014/2015 financial year..................................... 4 – 53(19)

(From the Section 79 Standing Committee: Public Accounts: 14 and 19 August 2015

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COUNCIL AGENDA : CITY OF TSHWANE METROPOLITAN MUNICIPALITY: 27 AUGUST 2015 REPORT TO COUNCIL JRK THEMA (012 358 1723) COUNCIL: 27 August 2015 1. OFFICE OF THE SPEAKER

ANNUAL PERFORMANCE REPORT OF THE SECTION 79 STANDING COMMITTEE: PUBLIC ACCOUNT (MPAC) FOR 2014/2015 FINANCIAL YEAR. (From the Section 79 Standing Committee: Public Accounts: 14 and 19 August 2015)

1. PURPOSE

The purpose of this report is to account about the performance of the Section 79 Standing Committee: Municipal Public Accounts (MPAC), in line with its annual oversight programme read in conjunction with the terms of reference.

2. STRATEGIC OBJECTIVES The strategic objectives addressed in the report are as follows: Strategic Objective 4: “Promote Good Governance and an Active Citizenry” Strategic Objective 5: “Improved Financial Sustainability” 3. BACKGROUND

In June 2011, City of Tshwane Council adopted a new governance model which replaced the former Section 80 Committees with Section 79 Oversight and Standing Committees. The Municipal Public Accounts Committee (MPAC) is therefore constituted as Section 79 Standing Committee that derives its mandate from Council. The terms of reference were consequently developed to guide the work of MPAC which is aligned to the annual programme of the Council of the City of Tshwane.

4. DISCUSSION

The Municipal Public Accounts Committee holds its monthly meetings, as per the approved annual programme of Council and have the authority to interrogate the

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following documents and to make recommendations to Council, in accordance with its terms of reference: a) Unforeseen and unavoidable expenditure; b) Unauthorised, irregular or fruitless and wasteful expenditure; c) Service Delivery and Budget Implementation Plan (SDBIP); d) Monthly budget statements; e) Mid-year budget and performance assessment of the municipality; f) Mid-year budget and performance assessment of municipal entities; g) Disclosures concerning Councillors, directors and officials; h) Annual financial statements; i) Annual report; j) Issues raised by the Auditor General in the audit reports; k) The appointment of the Audit Committee; l) Disciplinary steps instituted in terms of the Municipal Finance

Management Act; m) The review of the Integrated Development Plan (IDP) post elections; n) The annual review of the IDP; o) Performance management plan; p) The draft annual budget with reference to the approved IDP; and q) Declaration of interest forms submitted by Councillors

4.1 COMMITTEE MEETINGS

This report will highlight items considered by the Committee in its monthly meetings including resolutions of those meetings.

4.1.1 FIRST QUARTER PERFORMANCE

Reports considered and adopted by the Committee in the first quarter include: a) Creditors age analysis as at 28 February 2014, 31 March 2014 and 30

April 2014;

b) Arrear debt owed to the City (31 March 2014);

c) Corporate monthly and third quarter financial report for the period ended 31 March 2014;

d) Report on the legal opinions secured and rendered by the Group Legal

Services Department; e) MPAC Process Plan for 2014/15 financial year;

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4.1.2 SECOND QUARTER PERFORMANCE Items considered by the Committee during the second quarter were as follows:

a) Oversight Report on preliminary in-year financial report (monthly and fourth quarter budget statement) for the period ending 30 June 2014;

b) MPAC Oversight Report on Group Financial Services Department (Supply

Chain Management) ex facto payments approved for tenders, for the 4th quarter of the 2013/14 financial year;

c) Oversight Report on supply chain management performance report for 4th

quarter 2013/14 financial year; d) Oversight Report on the fourth quarter performance report for financial

year 2013/14; 4.1.3 THIRD QUARTER PERFORMANCE

The reports below were discussed and adopted by MPAC in the third quarter: a) Oversight Report on Approval/Condonement of Variances /Overspending

/Unauthorized Expenditures on the Operating Budget for the Period ended 30 June 2014 (1st Supplementary);

b) Oversight Report on In- year Financial Report (Monthly and First Quarter Budget Statement) for the period ending 30 September 2014;

c) Oversight Report on the quarter 1 performance results; d) Oversight Report on the Audit and Performance Committee (APC) of the

City of Tshwane and its municipal entities to the Mayoral Committee for quarter 3 and 4 of financial year 2013/2014;

e) Oversight Report over corporate monthly financial report for the period

ended 30 June 2014(Final Supplementary); f) Oversight Report on the Annual Report of the City of Tshwane and its

entities for the financial year 2013/14; g) Oversight Report on supply chain management performance report for 1st

quarter of 2014/15 financial year: 01 July – 30 September 2014; h) Oversight Report on Corporate Monthly and First Quarter Financial report

for the period ended September 2014;

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i) Oversight Report on the mid-year Budget and Performance Assessment in Terms of Section 88 of the Municipal Finance Management Act 2003 for Municipal owned Entities for July –December 2014;

j) Oversight Report on the Mid-Year (Section 72) Performance Report for

2014/15 financial year; k) Corporate Monthly and Mid-year Financial Report for the period ended 31

December 2014. l) Oversight Report on the performance of Supply Chain Management for

the 2nd quarter of the 2014/2015 financial year: 01 October -31 December 2014.

4.1.4 FOURTH QUARTER PERFORMANCE

In the last quarter of 2014/15 financial year, matters considered were as follows: a) Report on performance of supply chain management for the 2nd quarter of

2014/15 financial year; b) Municipal Public Accounts Mid-term Report; c) Municipal Public Accounts Third Quarter Report for 2014/15 financial year; d) Oversight Report on in-year financial report (monthly and third quarter

budget statement) for the period ending 31 March 2015. e) Oversight Report on supply chain management performance report for 1st

quarter of 2014/15 financial year: 01 July – 30 September 2014; f) Oversight Report on corporate monthly and first quarter financial report for

the period ended 30 September 2014; g) Oversight Report on the mid- year budget & performance assessment in

terms of Section 88 of the Municipal Finance Management Act for municipal owned entities for July –December 2014.

h) Oversight Report on the Mid-year (section 72) performance report for

2014/15 financial year;

i) Corporate Monthly and Mid-year Financial Report for the period ended 31 December 2014;

j) Oversight Report on the performance of supply chain management for the

2nd quarter of the 2014/15 financial year:01 October- 31 December 2014

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4.1.5 SUMMARY OF HIGHLIGHTS

a) Public Participation

The ultimate goal of the Committee, amongst others, as outlined in strategic objective 4 is to “promote good governance and an active citizenry”. This strategic objective is further aligned to part 4, Section 16 and 17 of the Local Government: Municipal Systems Act, which necessitates that the municipality involve the community in its affairs.

In view of the above requirements, MPAC conducted public participation for the first time since its establishment, over the Annual Report of the City of Tshwane. This session was convened on 28 February 2015, wherein the executive accounted to members of the public on the financial and non-financial performance of the City for the 2013/14 financial year. The Oversight Report on the Annual Report was subsequently submitted by MPAC to Council in March 2015.

b) Intergovernmental Relations

Pursuant to the spirit of cooperative governance as envisaged in the

Intergovernmental Relations Framework Act, all three spheres of government are

called upon to “facilitate co-ordination in the implementation of policy and

legislation”, including though not limited to “monitoring implementation of policy

and legislation”. Given this background, the Section 79 Standing Committee:

Municipal Public Accounts (MPAC) played a critical role as can be seen in the

diagram below:

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DATE ACTIVITY OBJECTIVE VENUE

1 July 2014

Anti-Fraud and Corruption Workshop

Awareness of fraud and corruption

Tshwane Leadership and Management Academy (TLMA)

12 Sep 2014

Study visit by MPAC from Mangaung Metropolitan Municipality.

Benchmarking

Sammy Marks Council Chambers

22-25 Sep 2014

15th Association of Public Accounts Committees (APAC) Conference

Enhancing oversight towards ensuring quality service delivery for all citizens

Sun City, North West Province

31 Oct 2014

Debt Collectors Workshop (Revenue Management)

Assessment of debt collectors appointed by municipalities

Johannesburg

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c) Committee Performance in terms of the Process Plan

First Quarter: July to September 2014/15

NUMBER MILESTONE DESCRIPTION

LEGISLATION

(MFMA/MSA) & CoT Policies (Supply Chain

Management Policy)

RESPONSIBILITY TIME-

FRAME

STATUS

1 Submission of 4th Quarterly and Annual Declaration of Unauthorised and Irregular Expenditure Report

MFMA, s 125(2)(d)(i) &

MFMA, s 32(4) Finance 31 July

Done(2013/14 Annual Report)

2 Submission of 4th Quarterly and Annual Deviation Report

MFMA, s 71 Government Notice 32141 dated 17 April 2009, and s.23 SCM Policy

Finance 31 August


3 Service Delivery Budget Implementation Plan (SDBIP) for fourth quarter

MFMA, s53(1)(c)(ii) Finance 31 August Done(2013/14 Annual Report)

4 Submission of municipality’s Annual Financial Statements to Auditor General

MFMA,s126(1)(a) City Manager 31 August Done(2013/14 Annual Report)

5 Submit municipal entity Audited Financial Statements to parent municipality and to Auditor General

MFMA, s126(2) Municipal Entity Accounting Officer

31 August Done(2013/14 Annual Report)

6 Submission of SDBIP for fourth quarter

MFMA, s53(1)(c)(ii) Finance 30 September

Done (2013/14 Annual Report)

7 Report on disciplinary matters related to MFMA

MFMA, s62(1)(e) and MFMA, s 171(4)

City Manager 30 September


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8 Report on functioning of audit committee

MFMA, s165 and MFMA, s166

Chairperson, Audit Committee

30 September

Done(2013/14 Annual Report )

9 Monthly budget statements

MFMA, s71 Finance Monthly Done(2013/14 Annual )

10 Performance agreements signed by the Municipal Manager and section 56 officials

MSA, s57(1) City Manager 30 September

Done(2013/14 Annual)

11 Declaration forms completed/updated by Councillors and officials

MSA, Schedule 1,s5(6)(7)(8)(9) and MSA, Schedule 2,s4(5)(5A)(7)(8)

City Manager 30 September


12 Submission of consolidated Annual Financial Statements (AFS) to Auditor-General (municipalities and entities)

MFMA, 126(1) City Manager 30 September


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Second Quarter: October to December 2014/15

13 Submission of 1st Supply Chain Management Deviation report

MFMA, s 71, Government Notice 32141 of 17 April 2009 and s. 23 of CoT SCM policy

Finance 30 November


14 Submission of 1st Quarterly Declaration of Unauthorized and Irregular Expenditure report

MFMA, s32 Finance 30 November

Done (6 Feb 2015 OCM)

15 Submission of 1st Quarterly Report (Performance and Financial)

MFMA, s52(d) Finance 30 November

Done (15 May 2015 OCM)

16 Submission of 1st Quarterly Financial Deviation Report

MFMA, s 71, Government Notice 32141 of 17 April 2009 and s. 23 of CoT SCM policy

Finance

30 November


17 Auditor General submits to Parliament and the provincial legislatures the names of any municipalities which have failed or continue to fail to submit AFS

MFMA, s133(2) Auditor-General

31 October and quarterly thereafter


18 Within three months of receiving AFS, Audit report is returned to Municipal Manager


30 November/ 31 December


19 Entity submits annual report to Municipal Manager

MFMA, s87(11) Municipal Entity Accounting Officer

31 December Done (2013/14Annual report)

20 Annual Financial Statements returned from Auditor-General, municipality to address issues raised by AG


30 November:


21 Submission of 1st quarterly report (performance and financial)

MFMA, s52(d) Mayor 31 December Done (5 May 2015: OCM)

22 Report on disciplinary matters related to MFMA

MFMA, s95(f) City Manager

31 December Done (2013/14 Annual Report)

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Third Quarter: January to March 2014/15

23 Submission of 2nd Quarterly (Mid-year) report (Performance and Financial)

MFMA, s72 City Manager 25 January Done (5 May 2015 OCM)

24 Submission of Annual Reports of municipality and entities tabled in council

MFMA s127(2) Mayor 31 January Done (5 May 2015 OCM)

25 Submission of the audited annual report MFMA, s121 City Manager 31 January

Done

26 Submission of 2nd Quarterly Declaration of Unauthorized and Irregular Expenditure Report

MFMA, s 125(2)(d)(i) and

MFMA, s 32(4)

Finance 28 February

Done (5 May 2015 OCM)

27 Submission of 2nd Quarterly SCM deviation report

MFMA, s 71 Government Notice 32141 of 17 April 2009 and s.23 of CoT SCM Policy

Finance 28 February

Discussed in the OCM June 2015

28 Report on SDBIP for second quarter MFMA, s 53(1)(c)(ii) City Manager 28 February Done

29 Report on disciplinary matters relating to MFMA

MFMA, s 62(1)(e)

and MFMA, s 171(4)

City Manager 28 February

Done

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30 Exercise Oversight over Annual Report of the City and its Entities;

• The Committee to get a briefing from the Auditor General ‘s office

• The Committee to scrutinise the Annual Report and all other supporting documents

• Solicit comments from the public

• The Committee to generate questions and submit to the City Manager for written responses

• The Committee to hold a hearing with the City Manager and his team

• The Committee with the assistance of support staff will draft an oversight report and unanimously adopt it prior to table it in Council

• The Oversight report tabled in Council within two Months

MFMA, s121 and MFMA s129(1)

MPAC 31 March Done

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Council to have considered the annual report and adopted oversight report.

MFMA, s121 and MFMA s129(1)

Council 31 March Done

31 Within seven days of adoption of oversight report, the report ought to be made public.

MFMA s129(3) and MSA, s21A

City Manager Seven days after adoption by Council

Done

32 Convening of public hearings immediately after the release of the Auditor-General's report.

MFMA s129(3) and MFMA, s129(4)(a)

MPAC February/March Done

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Fourth Quarter: April to June 2014/15

33 Submission of 3rd Quarterly Supply Chain Management Deviation Report

MFMA, s 71 Government Notice 32141 dated 17 April 2009, and s.23 SCM Policy

Finance 31 May

Done

34 Submission of declaration of unauthorised and irregular expenditure

MFMA, s 125(2)(d)(i) &

MFMA, s 32(4) Finance 31 May

Done

35 Submission of 3rd Quarterly report MFMA, s52(d) City Manager 31 May

Done

36 Submission of draft budget MFMA, chapter4 Finance 30 June Done

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5. CHALLENGES

The Section 79 Standing Committee: Municipal Public Accounts has experienced the following challenges in the financial year under scrutiny: I. That most Departmental heads or delegates do not attend Municipal Public

Accounts Committee meetings, which lead to lack of answers to questions and concerns raised by the Committee.

II. That some reports requested by the Committee take long to reach the

Committee, while some are not submitted at all.

6. COMMENTS OF STAKEHOLDER DEPARTMENTS

Not applicable.

7. IMPLICATIONS 7.1 FINANCIAL

The report is produced internally, thus no financial implications incurred in the production of the report.

7.2 HUMAN RESOURCES

Internal human resources were utilized to produce the report.

7.3 Communications

No confidential information contained in the report, thus the report can be publicised.

7.4 PREVIOUS COUNCIL OR MAYORAL COMMITTEE RESOLUTIONS

The resolutions are reflected under background and discussion, this relates to the terms of reference of the Committee which is a Council resolution of 09 June 2011.

7.5 CONSTITUTIONAL AND LEGAL FACTORS: This report compiles with the following legislation:

a) Constitution of the Republic of South Africa, Act 108 of 1996 b) Local Government: Municipal Finance Management Act and Circular 65 of the

same act, Act 56 of 2003. c) Local Government: Municipal Systems Act 32 of 2000. d) Local Government: Municipal Structures Act 117 of 1998 e) Treasury Regulation Circular 65 of November 2012 f) Government Gazette Notice 32141 of 17 April 2009 on Municipal Budgets and

Reporting Regulations. g) Regulation 28 on Municipal Budgets and Reporting Regulations. h) Intergovernmental Relations Framework Act 13 of 2005.

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8. CONCLUSION

This report complies with legislative requirements delegated to MPAC by Council, Committee terms of reference and approved annual council programme. MPAC’s process plan has proven to be an effective barometer to monitor the work of the executive and compliance with the legislative prescripts. Similarly, the Office of the City Manager is commended for ensuring that there’s generally plausible compliance with the law and regulations as prescribed by the National Treasury, Municipal Systems Act, Municipal Structures Act, MFMA and its circulars. Relevant legislative prescripts and process plan have adequately been complied with. In addition, MPAC has made strides in ensuring that strategic objective 4 “promote good governance and an active citizenry” and strategic objective 5 “improved financial sustainability” are constantly adhered to. The current mechanism of providing oversight reports over Council referrals is further enhancing accountability by the executive and improving service delivery.

IT WAS RECOMMENDED (TO THE SECTION 79 STANDING COMMITTEE: PUBLIC ACCOUNTS: 19 AUGUST 2015) That it be recommended to the Council: 1. That cognizance be taken of this report; 2. That after consideration and approval by the Committee this report be tabled to

Council for consideration and cognisance. After the Chairperson put this matter for discussion at the Section 79 Standing Committee: Public Accounts Special meeting of 19 August 2015, Councillor BR Topham indicated that he was satisfied with the report and requested the following:

• That summary of the reports that the Committee have not dealt with be submitted to MPAC.

The Chairperson indicated that it would be done. The Section 79 Standing Committee: Public Accounts hereafter resolved to set out below. ANNEXURES:

A. Resolution tracking. B. Attendance of meetings by Committee Members. C. Draft Process Plan for 2015/16.

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RECOMMENDED: 1. That cognisance be taken of this report.

2. That a summary of the reports that the Committee have not dealt with be submitted to the Section 79 Standing Committee: Public Accounts.

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ANNEXURE A

MPAC RESOLUTION TRACKING FOR 21 AUGUST 2014 COMMITTEE MEETING

DEPARTMENT

TITLE OF THE REPORT

AUTHOR /INITIATOR

RESOLUTION

STATUS /EVIDENCE

Group Legal Services Department

Report on the legal opinions secured and rendered by the Group Legal Services Department

Bruno Seabela

1. In the premises, the Group Legal Services is hereby advised that the accounting officer is entitled, in section 32(4) of the MFMA to take steps to investigate and recover irregular expenditure incurred by the implicated officials.

Done

Office of the Speaker Process Plan 2014/15 MD Matsena 1. That the contents of this report are noted accordingly and approval be granted.

2. That this process plan be reviewed twice a

year i.e. every six month: as well as at the end of every financial year.

Done On-going

Calling of reports MPAC 1. The submission of a report listing all directors, owners and shareholders (including trusts and trustees) of companies doing business with the City of Tshwane.

2. The submission of a report indicating whether all Councillors submitted their declarations of interest

Done in the Committee meeting of 17 January 2014 Done in the Committee meeting of 17January 2014

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MPAC RESOLUTION TRACKING FOR 12 SEPTEMBER 2014 COMMITTEE MEETING

DEPARTMENT TITLE OF THE REPORT

AUTHOR /INITIATOR

RESOLUTION STATUS /EVIDENCE

Group Legal Services Department

Report on the legal opinions secured and rendered by the Group Legal Services Department

Bruno Seabela 1. That the attached legal opinion (Annexure A and B) be adopted and implemented as follows:

1.1 Set aside contracts in contravention of Regulation 44 of the Supply Chain Management and the City of Tshwane`s Supply Chain Management Policy.

1.2 Take steps to investigate and recover irregular expenditure incurred by the implicated officials.

2. That it be acknowledged that the matter in dealing with assets when it is discovered that there is a contravention in terms of Regulation 44 of the Supply Chain Management Regulation, has been referred to both National Treasury as well as Auditor General for guidance, without feedback.

3. That the City Manager continues to raise the matter in dealing with assets when discovered that there is a contravention in terms of Regulation 44 of the Supply Chain Management Regulations with National Treasury and the Auditor General.

Done Done On-going Ongoing

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4. That the City Manager secure both legal and accounting opinions in order to address the issues not covered by the presently available legal opinion so that a comprehensive approach and process can be mapped on treatment on these matters in future.

Benchmark to the City of Tshwane Section 79 Standing Committee: MPAC on 12 September 2014

1. That cognisance be taken of this report

2. That the programme contained on the report be approved as a guideline for the visit.

3. That all necessary resources be availed to enable the visit to be a success

Done Done Done

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MPAC RESOLUTION TRACKING FOR 14 NOVEMBER 2014 COMMITTEE MEETING

DEPARTMENT TITLE OF THE REPORT

AUTHOR/INITIATOR

RESOLUTION Status/ Evidence

Office of the Speaker Oversight report on preliminary in-year financial report (monthly and fourth quarter budget statement) for the period ending 30 June 2014

Mapiti Matsena 1. That cognisance be taken of the contents of this report.

2. That mitigation as proposed by departments be considered sufficient to address the problems encountered during the 2013/14 financial year.

3. That a progress report be submitted to MPAC on a quarterly basis to monitor the impact of proposed remedial actions.

4. That reports be submitted to the Section 79 Standing Committee: Public Accounts at its meeting to be held on 16 January 2015 by Corporate and Shared Services, Emergency Services, Group Information and Communication Technology, Regional Service Delivery Departments and the Office of the Speaker to outline circumstances that led to the overspending and proof that applicable legislative prescripts were complied with.

5. That the Chief of Police submit a report to the Section 79 Standing Committee: Public Accounts at its meeting to be held on 16

Done Done Outstanding Outstanding Verbal reporting

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January 2015 wherein he explain why the Speed Law Enforcement programme did not materialise.

Done in 13 March 2015 Committee meeting

Office of the Speaker Municipal Public Accounts Committee oversight report on Group Financial Services Department (Supply Chain Management) ex facto payments approved for tenders for the 4th quarter of the 2013/14 financial year

Mapiti Matsena 1. That cognizance be taken of the contents of this report.

2. That cognizance be taken that the reasons provided for deviations are satisfactory.

3. That the decision of Council to approve and condone deviations from the Economic Development Department to the value of R 402 500, 00 be confirmed.

4. That the decision by Council to approve and condone deviation from the GCIS Department to the monthly value of R 1000 000, 00 be confirmed.

5. That cognisance be taken of the efforts of the City of Tshwane to reduce deviations.

Done Done Done Done Done

Office of the Speaker Municipal Public Accounts Committee oversight report on Group Financial Services Department (Supply Chain Management) ex facto payments approved for tenders

Mapiti Matsena 1. That cognisance be taken of the contents of this report.

2. That the reasons provided in this report regarding the ex facto payment are satisfactory

3. That condonation of the ex facto payment amounting to R4 937 657.50 by Chief

Done Done Done

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for the 4th quarter of the 2013/14 financial year

Information Officer is confirmed. 4. That there is no need to recover and/or

take any remedial steps against anyone as per the provisions of the MFMA.

Done

Office of the Speaker Oversight report on supply chain management Performance report for 4th quarter 2013/14 Financial Year

Mapiti Matsena 1. Promote equitable participation and shared economic growth, during all quarters of the current financial year, by accommodating qualifying youth, women and people with disabilities in supply chain processes as per the Supply Chain Management Policy.

2. Outline clear targets in the Service Delivery and Budget Implementation Plan of the next financial year, to specify commitment to empower youth, women and people with disabilities in supply chain processes as per the Supply Chain Management Policy.

3. Specify the criteria followed in awarding contracts to companies that failed to provide their BEE status in the next MPAC meeting.

4. Compel all bidders who are awarded contracts, from the date of the approval of this report, to declare their credentials in order to ensure transparency and compliance with Codes of Good Practice.

On-going Pending the 2015/2016 Financial Year Done in 13 March 2015 meeting On-going

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5. Submit a progress report quarterly to MPAC on effectiveness of the interventions to address revenue losses related to theft, obsolete and damaged assets

On-going

Office of the Speaker Oversight report on the fourth quarter performance Report for financial year 2013/14

Mapiti Matsena 1. That cognisance be taken of the contents of the report.

2. That Council approve the 4th quarter performance report for financial year 2013/14 for further processing towards the final submission of the 2013/14 annual report.

3. That the strategy to address delays in reporting and under spending, including a monitoring plan, be submitted to the Section 79 Standing Committee: Public Accounts at its meeting to be held on 13 February 2015.

Done Done Done in the Standing Committee meeting of 26 Feb 2015 (Quarter 1 Performance results)

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MPAC RESOLUTION TRACKING FOR 06 FEBRUARY 2015 COMMITTEE MEETING

Department Title of the report Author /Initiator

Resolution Status/ Evidence

Office of the Speaker Oversight Report on Approval/Condonement of Variances /Overspending /Unauthorized Expenditures on the Operating Budget for the Period ended 30 June 2014(1ST Supplementary)

Mapiti Matsena

1. That cognizance be taken of the contents of this report.

2. That cognizance be taken of the reason

provided for variances/overspending/unauthorized expenditure on the operating budget for the period that ended 30 June 2014.

3. That the Municipal Manager, as Accounting Officer, monitor departments to ensure that future occurrences of such expenditures are prevented.

4. That in line with Chapter 6 of the MFMA on Unauthorized, Irregular or Fruitless and Wasteful Expenditure by municipalities, the accounting officer submits a report to the Council Committee (MPAC) in the Oversight meeting of March 2015 on the recoverability of any unauthorized irregular of fruitless and wasteful expenditure.

5. That Council approves the report with reasons provided for variances/overspending/unauthorized expenditure on the operating budget for the period ended 30 June 2014.

Done Done On-going Done, verbal clarity provided in 13 March 2015 meeting Done

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Office of the Speaker Oversight Report on in- year Financial Report (Monthly and First Quarter Budget Statement) for the period ending 30 September 2014

Mapiti Matsena

1. That cognizance be taken of the contents of the report.

2. That mitigation as submitted by the

department be considered as sufficient to address the problems encountered during the period under review.

3. That a progress report be submitted to MPAC on a quarterly basis to monitor the impact of proposed mitigations.

4. That in view of the recommendations 1 to 3 above Council approves this in Year Financial Report for the period ending 30th September 2014

Done Done On-going Done

Office of the Speaker Oversight Report on the quarter 1 performance results

Mapiti Matsena

1. That cognizance be taken of the content of this report.

2. That the remedies as proposed in the attached quarter 1 performance report be considered sufficient to address problems encountered during the quarter under review.

3. That the Department of Roads and Transport, Housing and Human Settlement, Economic Development and Regional Service Delivery Transformation be requested to amend their SDBIP during amendment process to rectify the errors as indicated in the body of this report.

Done Done Done

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4. That the “proposed amendments to improve

reporting for 2014/15 and the next IDP review, “as envisage in the annexure, after the adoption of this report by Council, be communicated with the office of the Auditor –General ,Treasury and the MEC of Local Government and Traditional Affairs in order to avoid erroneous reporting and/or possible negative audit outcomes

Done

Office of the Speaker Oversight Report on the Audit and the Performance Committee (APC) of the City Tshwane and its municipal entities to the Mayoral Committee for quarter 3 and 4 of Financial Year 2013/2014.

Mapiti Matsena

1. That cognizance be taken of the contents of this report.

2. That the Audit and Performance Committee

submit specific reporting timelines to MPAC in its meeting of March 2015 on which quarterly reports will be tabled in the Oversight Committee meeting and Council.

Done Not done

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Office of the Speaker Oversight Report over corporate monthly Financial Report for the ended 30 June 2014(Final Supplementary)

Mapiti Matsena

1. That cognizance be taken of the report. 2. That cognizance be taken that reasons

submitted for deviations are acceptable. 3. That a strategy be submitted and presented

to the MPAC meeting scheduled for March 2015,by Metro Police to improve fine-collection

4. That continuous monitoring and training be

provided to personnel dealing with financial transactions to avoid variances, overspending and unauthorised expenditure

5. That progress reports on the re-evaluation

of properties, implementation of the top structures and renovation undertaken at facilities be presented to MPAC March 2015.

Done Done Done in 06 February 2015 Standing Committee meeting: Annexure A:Reason for variances) On-going Not done

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MPAC RESOLUTION TRACKING FOR 13 MARCH 2015 COMMITTEE MEETING

Department Title of the report Author/Initiator Resolution Status/ Evidence

Office of the Speaker Oversight Report on the Annual Report of the City of Tshwane and its entities for the financial year 2013/14.

Matsena MD 1. That cognizance be taken of the contents of this report

2. .That the Executive be commended for an unqualified audit opinion for the financial year 2013/14

3. That Council approves the Annual Report 2013/14 without reservations

Done Done Done

Office of the Speaker Oversight report on supply chain management performance report for 1st quarter of 2014/15 financial year: 01 July – 30 September 2014

Matsena MD 1. That Council takes cognisance of the report.

2. That the department provide to MPAC in the April 2015 meeting with the progress report on the outcome of measures implemented to safeguard lives and assets, to avoid theft.

3. That the following recommendation of Council meeting of 27 November 2014 be reaffirmed:

“2. That continuous monitoring of the

progress and empowerment of BEE

companies be monitored by the respective

Strategic Executive Directors.

Done Outstanding Done

Office of the Speaker Oversight Report on Matsena MD 1. That Council takes cognisance of the Done

32

Corporate Monthly and First Quarter Financial report for the period ended September 2014.

report.

2. That the Audit and Performance Committee work closely with the Group Financial Services Department to ensure that all corrective measures identified for various Deviations are adhered to and complied with.

3. That the reporting time limits and or

remedial steps be taken to ensure compliance to regulations and legislation.

4. That the recommendations of the Council meeting of 27 November 2014 be reaffirmed

On-going On-going Done

Office of the Speaker Oversight Report on the mid-year Budget and Performance Assessment in Terms of Section 88 of the Municipal Finance Management Act 2003 for Municipal owned Entities for July –December 2014

Matsena MD 1. That a report be submitted and presented to MPAC in the May 2015 oversight meeting, indicating steps taken in addressing all challenges highlighted within SWA and progress in that regard

2. That a report be submitted and presented to MPAC in the May 2015 oversight meeting updating the Committee on developments regarding the TEDA spending pattern, model to ensure financial sustainability and reduce

Done Done

33

dependence on the City, alignment of the organization design and review of the business plan to achieve its mandate.

3. That a report be submitted and presented in the MPAC meeting of May 2015, highlighting progress by HCT on construction of new units in the three identified areas and interventions to ensure that spending patterns are linked to targets to avoid variance by end of the financial year.

4. That Housing and Human Settlement Department finalise the transfer of outstanding immovable properties to HCT and report to MPAC in

May 2015.

5. That the three respective Municipal entities be invited separately to the Section 79 Standing Committee: Public Accounts, in order to make presentation to the Committee with regard to their business plans.

6. That the Chairperson of Section 79 Standing Committee: Public Accounts liaise with Service Delivery and Transformation Manager to determine which entity address the Committee first.

Outstanding Outstanding Outstanding Outstanding

Office of the Speaker Oversight Report on Matsena MD 1. That cognisance be taken of the contents Done

34

the Mid-Year(Section 72) Performance Report for 2014/15 Financial Year

of this report.

2. That a report be submitted to MPAC quarterly, on the efficiency of measures introduced by the City to address matters raised by the Auditor General in the audit for financial year 2013/14.

3. That the insufficient stock and funding for regions be considered in the budget allocation in the new financial year.

4. That a report on an applicable disaster management plan be made available to the Section 79 Standing Committee: Public Accounts at the next meeting to be held on 10 April 2015.

On-going Outstanding Not done

Office of the Speaker Corporate Monthly and Mid-year Financial Report for the period ended 31 December 2014

Matsena MD 1. That cognizance be taken of the contents of this report.

2. That the Strategic Executive Directors provide reasons for the variance and corrective measures taken and a report in this regard be submitted to MPAC April 2015.

3. That Department put measures in place to recover the budgeted revenue and inform the City Manager, accordingly if this revenue will not be realised.

4. That cognizance be taken of several efforts taken by the Municipality to

Done Outstanding Done Done

35

increase its revenue collection.

5. That Department utilizes internal services to prevent double costing of goods on services available in the organization.

.

On-going

Office of the Speaker Oversight report on the performance of Supply Chain Management for the 2nd quarter of the 2014/2015 financial year: 01 October -31 December 2014

Matsena MD 1. That cognisance be taken of the contents of this report.

2. That recognition be given to people with disability and women when tenders are awarded.

3. That commitment made during the State of the City address with regard to cooperatives be taken into consideration when awarding Tenders.

4. That the Service Delivery Coordinator and Transformation Manager submit written explanation as to why the Municipality deviated in respect of innovative Farming Systems (Pty) Ltd as well as the appointment of an auctioneer to Section 79 Standing Committee: Public Accounts at its next meeting to be held on 10 April 2015.

Done On-going On-going Done

36

MPAC RESOLUTION TRACKING FOR 15 MAY 2015 COMMITTEE MEETING

DEPARTMENT Title of the report Author/Initiator Resolution Status/ Evidence

Office of the Speaker Report on performance of supply chain management for the 2nd quarter of 2014/15 financial year

MD Matsena 1. That cognizance be taken of the report. 2. That the reasons advanced for the deviation be accepted as sufficient.

Referred to next meeting of June 2015

Public accounts midterm report

MD Matsena 1.That cognizance be taken of the contents of this report 2. That the Chairperson of the Audit and Performance Committee be requested to attend MPAC meetings at least on a quarterly basis to deal/respond to matters which will assist MPAC to exercise its oversight responsibilities over the quarterly performance reports (financial and non-financial). 3. That the City Manager ensures that it is compulsory for relevant Top Management to attend MPAC meetings as per approved annual Council calendar and submit reports timeously.

Done Done Done

Office of the Speaker Public accounts third quarter report for 2014/15 financial year

MD Matsena 1. That cognisance be taken of the contents of this report.

2. That departments reports to MPAC

Done Ongoing

37

quarterly on compliance with BEE spending, highlighting expenditure for women and people with disabilities within the spending threshold of less than R30 000.

3. That the Audit and Performance Committee prioritise and monitor BEE spending in its audit plans and submit a quarterly report to MPAC on progress recorded.

4. That Audit and Performance Committee to monitor and audit the validity and integrity of data of the City�s asset register, and report its findings to MPAC quarterly.

5. That the City Manager provides MPAC with action plan to address the findings of oversight report of the 13 March 2015 on the annual report of the City and its entities on a quarterly basis to monitor the impact of proposed mitigations.

Ongoing Ongoing Done Done

Office of the Speaker Oversight report on in-year financial report (monthly and third quarter budget statement) for the period ending 31 march 2015.


2. That the Budget Steering Committee must monitor budget implementation and provide quarterly progress reports to Council.

Done Ongoing Ongoing

38

3. That each and every Department must establish a cost containment committee.

4. That mitigations/remedial actions as proposed by departments be considered sufficient to address the problems encountered during, and

5. That a progress report be submitted quarterly to MPAC on the impact of the remedial actions

Ongoing

Office of the Speaker Oversight report on the annual report of the city of Tshwane and its entities for the financial year 2013/14

MD Matsena 1. That cognizance be taken of the contents of this report.

2. That the Executive be commended for an unqualified audit opinion for the financial year 2013/14.

3. That Council approves the Annual Report 2013/14 without reservations.

Done Done Done

Office of the Speaker Oversight report on supply chain management performance report for 1st quarter of 2014/15 financial year: 01 July – 30 September 2014


2. That the Department provide to MPAC in the April 2015 meeting with a progress report on the outcome of measures implemented to safeguard lives and assets, to avoid theft.

3. That the following recommendation of the Council meeting of 27 November

Done Not Done Ongoing

39

2014 be reaffirmed: “2. That continuous monitoring of the progress and empowerment of BEE companies be monitored by the respective Strategic Executive Directors.”

Office of the Speaker Oversight report on corporate monthly and first quarter financial report for the period ended 30 September 2014

MD Matsena 1. That Council takes cognisance of the report.

2. That the Audit and Performance Committee work closely with the Group Financial Services Department to ensure that all corrective measures identified for various deviations are adhered to and complied with.

3. That the reporting time limits and or remedial steps be taken to ensure compliance to regulations and legislation.

4. That the recommendations of the Council

meeting of 27 November 2014 be reaffirmed.

Done Ongoing Ongoing Done

Office of the Speaker Oversight report on the mid- year budget & performance assessment in terms of section 88 of the municipal finance management act, 2003 for municipal owned entities for July

MD Matsena 1.That a report be submitted and presented to MPAC in the May 2015 oversight meeting, indicating steps taken in addressing all challenges highlighted within SWA and progress in that regard. 2.That a report be submitted and presented to MPAC in the May 2015 oversight meeting updating the Committee on developments

Not Done Not Done

40

–December 2014 regarding the TEDA spending pattern, model to ensure financial sustainability and reduce dependency on the City, alignment of the organizational design and review of the business plan to achieve its mandate. 3. That a report be submitted and presented in the MPAC meeting of May 2015 , highlighting progress by HCT on construction of new units in the three identified areas and interventions to ensure that spending patterns are linked to targets to avoid variances by the end of the financial year. 4. That Housing and Human Settlement Department finalise the transfer of outstanding immovable properties to HCT and report to MPAC in May 2015. 5. That the three respective Municipal Entities be invited separately to the Section 79 Standing Committee: Public Accounts, in order to make a presentation to the Committee with regard to their respective business plans. 6. That the Chairperson of the Section 79 Standing Committee: Public Accounts liaise with the Service Delivery Coordinator and Transformation Manager to determine which entity should address the Committee first

Not Done Not Done Not Done Done Done

Office of the Speaker Oversight report on the mid-year (section


Done

41

72) performance report for 2014/15 financial year

2. That a report be submitted to MPAC quarterly, on the efficacy of measures introduced by the City to address matters raised by the Auditor General in the audit for financial year 2013/14.

3. That the insufficient stock and funding for regions be considered in the budget allocation in the new financial year.

4. That a report on an applicable disaster management plan be made available to the Section 79 Standing Committee: Public Accounts at its next meeting to be held on 10 April 2015.

Done Ongoing Not Done

Office of the Speaker Corporate monthly and mid-year financial report for the period ended 31 December 2014

MD Matsena 1. That cognizance be taken of the contents of this report.

2. That the Strategic Executive Directors provide reasons for the variances and corrective measures taken and a report in this regard be submitted to MPAC meeting of April 2015.

3. That Department put measures in place to recover the budgeted revenue and inform the City Manager, accordingly if this revenue will not be realised.

4. That cognizance be taken of several efforts taken by the Municipality to increase its revenue collection.

Done Not Done Ongoing Ongoing

42

5. That Department utilizes internal services to prevent double costing of goods on services available in the organization.

Ongoing

Office of the Speaker Oversight report on the performance of supply chain management for the 2nd quarter of the 2014/15 financial year:01 october- 31december 2014

MD Matsena 1.That cognizance be taken of the contents of this report 2. That recognition be given to people with disability and women when tenders are awarded. 3. That commitment made during the State of the City address with regard to cooperatives be taken into consideration when awarding Tenders. 4. That the Service Delivery Coordinator and Transformation Manager submit written explanations as to why the Municipality deviated in respect of Innovate Farming Systems (Pty) Ltd as well as the appointment of an auctioneer to the Section 79 Standing Committee: Public Accounts at its next meeting to be held on 10 April 2015.

Done Ongoing Done Done

43

MPAC RESOLUTION TRACKING FOR 15 JUNE 2015 COMMITTEE MEETING

Department Title of the report

Author/Initiato

r Resolution Status/Evidence

Office of the

Speaker

Oversight Report On In-

Year Financial Report

(Monthly And

Third Quarter Budget

Statement) For The

Period Ending

31 March 2015.

MD Matsena 1.That cognisance be taken of the contents of this

report.

2. That the Budget Steering Committee must

monitor budget implementation and provide

quarterly progress reports to Council.

3. That every Department establish a cost

containment Task Team, reporting on a monthly

basis to the Head of the Department, the Head of

Department in turn reporting monthly to the

Chief Financial Officer (CFO).

4. That mitigations/remedial actions as proposed

by Departments be considered sufficient to

address the problems encountered during this

quarter.

5. That a progress report be submitted quarterly

to MPAC on the impact of the remedial actions

during the financial year.

Done

Done

Done

Done

Done

44

Department Title of the report

Author/Initiato

r Resolution Status/Evidence

Office of the

Speaker

Group financial services

department

(financial reporting and

assets)

Creditors age analysis

as at 28 February 2015

for the city

MD Matsena That cognizance be taken of the creditor’s age

analysis as at 28 February 2015.

Done

Office of the

Speaker

Group Financial

Services Department

(Financial Reporting

And Assets)

Creditors Age Analysis

As At 31 March 2015

For The City

MD Matsena That cognizance be taken of the creditor’s age

analysis as at 31 March 2015.

Done

Office of the

Speaker

Group Financial

Services Department

(Financial Reporting

And Assets)

Creditors Age Analysis

As At 30 April 2015 For

The City

MD Matsena That cognizance is taken of the creditor’s age

analysis as at 30 April 2015.

Done

45

ANNEXURE B

Councillor: Jul 2014

Aug 2014

Sep 2014

Oct 2014

Nov 2014

Dec 2014

Jan 2015

Feb 2015

Mar 2015

Apr 2015

May 2015

Jun 2015

CM

IN CM

IN CM IN CM

IN CM

IN CM

IN CM

IN CM

IN CM

IN CM IN CM IN CM

IN

Mathafa, OM

(Chairperson)

- P - P - - - P - - P - P - P - - - P - P -

Buthelezi, M - P - P - - - P - - A - P - P - - - A - P - Lehobye, DJ - P - P - - - A - - A - P - P - - - A - P - Marishane, MS - P - A - - - A - - P - P - P - - - P - L - Rambau, TV

- P - P - - - A - - P - A - P - - - P - P -

Khalo, T Prof - A - P - - - P - - P - P - P - - - P - P -

- - - - - - Mbele, FNJ - A - P - - - P - - - P - P - P - - - A - P - Aucamp,M - N - N - - - N - - - N - N - N - - - L L -

46

Councillor: Jul 2014

Aug 2014

Sep 2014

Oct 2014

Nov 2014

Dec 2014

Jan 2015

Feb 2015

Mar 2015

Apr 2015

May 2015

Jun 2015

Brink, C - P P P P A P N N Engelbrecht, B

P - P - - - P - - - P - P - P - - - P - L -

Sutton, P - P - P - - - P - - - P - P P - - - P - P - Topham, BR - P - P - - - P - - - A - P - P - - - A - P - Smith, FJ - N - P - - - P - - - P - P - P - - - P - P - Mathebe, RK - P - P - - - P - - - P - P - L - - - P - L -

Glossary:

P=Present

A=Absent

CM=Committee meeting

IN=Inspection-in-loco

L=Leave of Absence

S=Sick leave

N=Not a member then

REPORT OF OVERSIGHT COMMITTEES REPORTING DIRECTLY … Calendar... · 2015-08-31 · j) Oversight...

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Transcript of REPORT OF OVERSIGHT COMMITTEES REPORTING DIRECTLY … Calendar... · 2015-08-31 · j) Oversight...