Module 6

MPAC Oversight Function: Questioning Techniques

APAC MPAC Training Roll-out 2012

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INTRODUCTION• It is important for all members of Municipal Public

Accounts Committees to prepare carefully for each hearing to ensure that they will serve their intended purpose.

• Committee members should:– Scrutinize the report, or allocated sections of it, as well as any

briefing documents, such as those prepared by the Auditor-General.

– Conduct their own research on issues of concern to supplement the information they have available.

• It will help committee members to prepare if they know how much time they will have during the meeting to ask questions.

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PRELIMINARY QUESTIONS• The MPAC inquiries should begin with an initial review of the Auditor-

General (AG) reports in question, • This process may be supplemented by a number of “preliminary

questions” based on the audit report and to which the Accounting Officer (AO)/ Municipal Manager (MM) is required to respond in writing or appear before the MPAC.

• Preliminary questions usually consist of standard/general questions and questions regarding the audit findings/matters of emphasis.– Standard/general questions: the purpose of standard/ general questions

is to gather information from all the votes on a transversal subject e.g. implementation of the MFMA. It allows the Committee to get an overall sense of the general problems in the municipality.

– Question regarding audit findings/matters of emphasis: these questions are mainly based on the contents of the AG report. Questions should be compiled on the regularity, computer, performance and/or forensic audits conducted at a specific municipality.

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PRELIMINARY QUESTIONS• The following material are utilised for generating preliminary

questions:– Historical AG reports for reference– AG report tabled– Previous resolutions of council or MPAC reports– Previous preliminary questions, replies thereto and their evaluation

• First phase of reporting stage when the reports are being drafted, preliminary questions are compiled.

• The standard questions are added and a final set of preliminary questions is submitted to the MPAC approval and amendments.

• The approved preliminary questions are sent to the AO/MM for his/ her written replies within a certain deadline by the MPAC Secretariat.

• Upon receipt of the replies from the AO/MM, the MPAC meets to consider the replies and determines possible way forward.

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CRITERIA FOR PRELIMINARY QUESTIONS

• Are the questions phrased in a manner ensuring that responsibility is accurately pinpointed?

• Are the questions clear from any ambiguity?• Do the questions address the main areas of concern,

to effectively enable the Committee to deal with the report?

• Do the questions contain clear reference to the audit report sections?

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TYPES OF QUESTIONSOpen questions • [Q] What gave rise to the irregular expenditure?• [A] Well, let me tell you… it goes back to the time when…

Closed questions• [Q] Who was responsible for allowing the irregular expenditure to

occur?• [A] The project leader.

Leading questions• [Q] 'Is it not correct that the internal audit committee advised you to?• [A] In this particular instance, that is correct.

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TIPS FOR FORMULATING QUESTIONS

• Plan the questions beforehand. Consider giving different committee members different areas to question.

• Ensure you know the law or regulations that apply to the specific topic. If necessary, get help from expert advisers.

• Be assertive, not aggressive or abusive. But do not allow slippery witnesses to obscure issues and escape accountability. (The witness must answer you.)

• Ask one question at a time and do not make a speech. Stick to the KISS rule: Keep It Short & Simple.

• If you think you are being misled, don’t lecture the witness. Rather ask more questions.

• Use leading questions to uncover inadequacies, lies and inconsistencies.

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EXAMPLES OF KEY QUESTIONS• Performance budgeting• Detail the steps which have been taken by your municipality/entity to

timeously prepare itself for performance budgeting as required in terms of the strategic plans?

• Steps to rectify non-compliance which led to a qualified audit• What steps are to be taken by your department/ entity to rectify the issues

that led to the qualification of the compliance audit opinion?• Steps to avoid fraud• What measures have been included in the fraud prevention plan to ensure

improper practices and opportunities for fraud, theft and corruption are avoided?

• Reporting fruitless expenditure discovered after year-end• Could you indicate what journal entries would be put through in next

year’s financial records to record the irregular and fruitless expenditure that was discovered after year-end and not recorded correctly in the current years’ financial statements

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EXAMPLES OF KEY QUESTIONS• Unauthorised expenditure• Please give us an explanation as to how the unauthorised

expenditure of (R200 000) occurred• Reporting fruitless expenditure discovered after year-end• Could you indicate what journal entries would be put through in

next year’s financial records to record the irregular and fruitless expenditure that was discovered after year-end and not recorded correctly in the current years’ financial statements

• Irregular expenditure• Indicate the reason why the irregular expenditure with regard to

the miscellaneous expenditure of the XYZ program cannot be quantified?

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CONCLUSION•I would like to conclude with a caption from the words of Amilcar Cabral:

•” Every responsible member must have the courage for his responsibilities, exacting from others a proper respect for his work and properly respecting the work of others. Hide nothing from the masses of our people. Tell no lies. Expose lies whenever they are told. Mask no difficulties, mistakes, failures. Claim no easy victories”.

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