Municipalities taught prudent financial management
The Department of Local Government and Human Settlements in Bokone Bophirima has partnered with the Department of Finance, Economy and Enterprise Development to members of the Municipal Public Accounts Committee (MPAC) on prudent financial management.
The training which started with municipalities in Bojanala Platinum district and will continue until next year March 2018, will specifically focus on Section 32 of the Municipal Financial Management Act (MFMA) of 2000 which deals with unauthorised, irregular, fruitless and wasteful expenditure at local government level.
MPAC is a council committee established in terms of Section 79 (1) of the Municipal Structures Act. MPACs are intended to strengthen the oversight arrangements in the municipality and to ensure efficient and effective use of municipal resources.
MPACs have similar functions and responsibilities for municipalities as undertaken by Standing Committee on Public Accounts at (national) parliament and (provincial) legislatures. Their primary role in a municipality is to:
To consider and evaluate the content of the annual report and to make recommendations to Council when adopting an oversight report on the annual report;
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 also be reviewed. This relates to current in-year reports, including the quarterly, mid-year and annual reports;
To examine the financial statements and audit reports of the municipality and municipal entities, 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’s recommendations have been implemented.
Source: Government of South Africa