FINANCE CHAIRPERSONS’
FORUM
TYPES OF COMMITTEES
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Types of Committees
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• Mayoral Committee
• Executive Committee
• Committees of Council (“Section 79”)
• Portfolio Committees (“Section 80”)
• Oversight Committee
• Municipal Public Accounts Committee
• Audit Committee
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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Oversight Committee cont’d
• The sole function of the Oversight Committee may be performed by the Municipal Public
Accounts Committee
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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))
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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
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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
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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”
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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
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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
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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
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THANK YOU FOR YOUR ATTENTION
?? Questions ??
Comments
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