FINANCE DIRECTORATE
SHAREHOLDING MANAGEMENT DEPARTMENT
MUNICIPAL ENTITY
QUARTERLY NEWSLETTER
Analyst
2013/2014 Quarter 1: July 2013 – September 2013, ISSUE NO. 26
As parent municipality to the municipal entities we aim to keep our municipal entity boards of directors
and staff abreast of all current news, legislation and policies directly affecting the municipal entities.
This will enable directors to be continuously informed as well as ensuring that we meet the legislative
requirement as parent municipality to ensure that both the municipality and the municipal entity
comply with the Municipal Systems Act, the Local Government: Municipal Finance Management Act and
any other applicable legislation.
Contents
The newsletter’s intend to convey information relating to the Local Government: Municipal Finance
Management Act, Local Government: Systems Act, Companies Act, Corporate Governance and any
information relevant to municipal entities.
THE LOCAL GOVERNMENT LEGISLATION:
THE MUNICIPAL FINANCE MANAGEMENT ACT
MFMA: Publication of Draft Municipal Regulations on standard chart of accounts for
Public Comment
National Treasury has published draft regulations on standard chart of accounts for public comment.
The Regulations specify national norms and standards for the recording and collection of local
government budget, financial and non-financial information which will include the specification of
information required for national policy co-ordination and reporting. This will enable an improved
understanding of the role of local government in the broader national policy framework and linkage to
other government functions.
The City is being used to pilot the project.
The Regulations will apply to municipal entities and the closing date for comment is 12 December
2013. There may be financial implications for municipal entities and therefore input is encouraged.
The draft Regulations can be accessed at:
http://mfma.treasury.gov.za/RegulationsandGazettes/MunicipalRegulationsOnAStandardChartOfAccoun
ts/Pages/default.aspx
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The City of Cape Town’s IDP explained
The City of Cape Town has produced a video in English, Afrikaans and isiXhosa explaining the
Integrated Development Plan of the City.
The City’s IDP is based on five key pillars:
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opportunity city;
safe city;
caring city;
inclusive city; and
well-run city.
The 12 minute YouTube video can be accessed at:
http://www.capetown.gov.za/en/IDP/Pages/Videos.aspx
GENERAL:
PWC’s: The Global State of Information Security® Survey 2014
9,600+ top business and IS executives across a range of industries answered more than 40 questions
on privacy, security safeguards and strategic business alignment
“The Global State of Information Security® Survey 2014 shows that executives are generally heeding
the need to fund enhanced security activities and have substantially improved technology safeguards,
processes, and strategies. Budgets are rising and confidence continues to climb.
But not so fast: The survey also reveals that while many organisations have raised the bar on security,
their adversaries are continuing to outpace them. Detected security incidents have increased—and so
has the cost of breaches. And hot-button technologies like cloud computing, mobility, and BYOD (“bring
your own device”) are often being implemented before they are secured. Adding to the challenge,
many executives are hesitant to share security intelligence with others—forgoing a powerful offensive
tool against targeted, dynamic attacks.
And, if few organisations have kept pace with today’s escalating risks, fewer still are prepared to
manage future threats. “You can't fight today's threats with yesterday’s strategies,” argues Gary
Loveland, a principal in PwC’s security practice. “What’s needed is a new model of information security,
one that is driven by knowledge of threats, assets, and the motives and targets of potential
adversaries.”
The survey is available at:
http://www.pwc.com/gx/en/consulting-services/information-security-survey/index.jhtml
Institute of Directors South Africa and Ernst & Young Position Paper:
A Framework for Remuneration Committees
The Institute of Directors Remuneration Committee Forum has produced a position paper on the role of
a Remuneration Committee.
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“The relationships between a board of directors, the executive management team, the shareholders
and other stakeholders are at the heart of corporate governance. Nowhere is this more important than
in the field of remuneration. As a body representing the board, the remuneration committee plays an
essential role in overseeing the quality of the remuneration information, disclosures and decisions of a
company. The remuneration committee therefore plays a significant role in building both public trust
and in making sustainable business decisions.”
http://www.ey.com/Publication/vwLUAssets/Remueration_Committee_Forum/$FILE/Position_Paper_1_
A_framework_for_remuneration_committees.pdf
Please contact Louise Muller (021 4003940) or Richard Wootton (021 4002701) if you have any queries
in respect of this newsletter.
Although every effort is made to check the accuracy and quality of the information supplied, The City
cannot be held responsible for any errors that may arise.
Copyright: City of Cape Town 2013. All rights reserved. No part of this newsletter may be reproduced or transmitted in any form without
written permission from the City of Cape Town, Finance Directorate, Shareholding Management Department.
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