west coast district municipality

A quality destination of choice through an

open opportunity society

West Coast District Municipality

CLEAN AUDIT

WEST COAST EXPERIENCE

HENRY PRINS

MUNICIPAL MANAGER

29-30 APRIL 2013

NATIONAL MUNICIPAL MANAGERS’ FORUM; RUSTENBURG



OUTLINE

• INTRODUCTION

• STAKEHOLDERS

• SYSTEMS

• CONCLUSION



INTRODUCTION

• DO NOT CLAIM TO KNOW IT ALL

• GOING BACK TO BASICS BY ENSURING THE BOOKS WERE KEPT IN ORDER

• NOT DOING ANYTHING SPECIAL

• 9 CONSECUTIVE UNQUALIFIED OPINIONS

• 2010/11; 2011/2012 CLEAN AUDIT



STAKEHOLDERS: POLITICAL LEADERSHIP

•ROLES AND RESPONSIBILITIES

•SYSTEM OF DELEGATIONS

•POSITIVE ENVIRONMENT

•ACCESSIBLE; COMMUNICATION

•PORTFOLIO COMM EACH MONTH (NOT JAN AND DEC) FOR OVERSIGHT

•AD-HOC RFI



STAKEHOLDERS: POLITICAL LEADERSHIP (CONT)

• ACCESS TO IGNITE PMS

• ATTENDANCE AUDIT COMMITTEE AND AG STEERING

• WHIPS ATTENDING AC

• VALUES: INTEGRITY, TRANSPARENCY, LOYALTY, ETHICAL, RESPECT, QUALITY



STAKEHOLDERS: MANAGEMENT

• LEADS ADMIN

• SET THE TONE AT THE TOP

• LEAD BY EXAMPLE

• WORK ETHIC

• FRAUD DECLARATIONS

• ZERO TOLERANCE MISCONDUCT

• COMMITMENT TO SUSTAIN AND IMPROVE GOVERNANCE PROCESSES



STAKEHOLDERS: MANAGEMENT (CONT)

• SUSTAINABILITY (CAN RECOMMENDATIONS / DECISIONS STAND THE TEST OF TIME)

• COMMUNICATION



STAKEHOLDERS: AG• PARTNERSHIP

• KEY-CONTROL VISITS OPPORTUNITY

• MONITORING AND EVALUATING THE STATUS OF IMPROVEMENTS

• THE SUSTAINABILITY OF KEY INTERNAL CONTROLS

• ENCOURAGE LEADERSHIP THAT WOULD BE A CATALYST FOR REALISATION OF CLEAN ADMIN



STAKEHOLDERS:AG (CONT)• GIVE SUPPORT AND GUIDANCE TO

THE AUDITEES (AG FOCUS AREAS)

• CONTINUOUS COMMUNICATION; STANDING INVITE TO AC

• PROPER PREPARATION FOR THE AUDIT

• SINGLE CONTACT FOR RFI’S AND COMAFS



STAKEHOLDERS:AUDIT COMMITTEE

• INDEPENDENCE

• SKILLED; QUALIFIED

• COMPOSITION; RIGHT MIX

• QUALITY OF INFO; ACCESS TO PMS/SDBIP

• MEETS 6X P.A.

• DISTRIBUTION OF AGENDA

• PROJECT: EVALUATE POLICY



STAKEHOLDERS:AUDIT COMMITTEE (CONT)

• TRAINING / NETWORKING OPPORTUNITIES

• MINUTES TO COUNCIL

• STRATEGIC PARTNER; VALUE-ADD

• OVERSIGHT



STAKEHOLDERS: INTERNAL AUDIT

• STRATEGIC PARTNER

• PROPERLY RESOURCED

• REPORT TO AUDIT COMM

• RBAP IMPLEMENTATION

• PLAN TO ADDRESS PAST FINDINGS

• REPORT TO MANAGEMENT ON FINDINGS; FOLLOW-UP

• ITEM ON EMT AGENDA



STAKEHOLDERS: INTERNAL AUDIT (CONT)

• LIAISON AG; NT; PT

• REVIEW AFS

• PREPARE AUDIT FILE (NOTES; BUDGET; COUNCIL RESOLUTIONS)

• CAE FORUM NETWORK



STAKEHOLDERS: IGR

• PROVINCIAL TREASURY: CAE AND CRO FORUMS

• CFO FORUM (MFMA MATTERS)

• MGRO PROCESS: MAYOR AND MM COMMITMENT

• NATIONAL TREASURY: ADVICE; SUPPORT



STAKEHOLDERS: STAFF• TEAMWORK

• QUALIFIED / SKILLS

• INSTITUTIONAL MEMORY; CONTINUITY

• RECRUIT, RETAIN AND DEVELOP THE BEST AVAILABLE TALENT

• DO NOT COMPROMISE ON COMPETENCE

• COMMITTED



STAKEHOLDERS:STAFF (CONT) • ACTIVE PARTICIPATION DIVISIONAL

HEADS (ERM; STRATEGIC PLANNING; PMS/SDBIP; BUDGET; PF COMM)

• ACCOUNTABILITY FOR UNIT; PERFORMANCE AGREEMENT

• EXTENDED MANAGEMENT TEAM (QUARTERLY)

• WHO PACKS YOUR PARACHUTE? (CHARLIE PLUMB, US PILOT IN VIETNAM)



SYSTEMS: RECORDS

• DOCUMENT MANAGEMENT (AUTOMATE)

• PROPER FILING; BASICS

• AVAILABILITY

• INTEGRITY / RELIABILITY



SYSTEMS: IT• GOVERNANCE FRAMEWORK

ADOPTED

• THE RIGHT SOFTWARE WILL REDUCE RISK E.G. IGNITE; SAMRAS; CAPMAN; CASEWARE; COLLABORATOR

• CONSOLIDATION OF FIGURES ARE PRONE TO HUMAN ERROR

• SLA’S WITH SERVICE PROVIDERS (EVALUATE)



SYSTEMS: RISK MANAGEMENT

• RISK COMMITTEE INTERNALLY

• QUATERLY RISK ASSESSMENT PER DIRECTORATE

• REPORT TO MANAGEMENT

• REPORT TO AUDIT COMM

• SHARED SERVICES RISK MANAGEMENT



SYSTEMS: PMS

• PDO DEVELOPMENT INTERNALLY (EMT); CONTINUOUS REVIEW OF KPI’S

• CREATE OWNERSHIP (KPI NOT APPLICABLE; CORRECT; NOT CONSULTANT DRIVEN)

• GENERATE OWN REPORTS

• RESPONSIBLE FOR INPUT IGNITE

• AVAILIBILITY OF POE



SYSTEMS: PMS (CONT)

• QUARTERLY AUDIT OF KPI’S / PMS

• PMS DEVOLVED SECTION HEADS

• AGENDA ITEM EMT



SYSTEMS: FINANCIAL

• MONTHLY BALANCING (TB)

• RIGHT SYSTEM

• COMPLIANCE REPORTING

• CONTINUOUS EVALUATION / TESTING OF INTERNAL CONTROL

• COMMUNICATE YEAR-END PROCESSES

• AFS PREPARE ON TIME



SYSTEMS: FINANCIAL (CONT)

• PERSON RESPONSIBLE FOR AFS MUST HAVE KNOWLEDGE OF THE REQUIREMENTS E.G. GRAP; ASSET REGISTER

• INSTITUTIONAL CAPACITY

• AFS REVIEW BY IA AND AC



SYSTEMS: SCM

• INDEPENDENT

• NO OUTSIDE INFLUENCE

• COMPLIANCE: BSC; BEC; BAC

• CHAIR ROTATES

• REPORT TO PF COMM, MAYCO, AC

• TRANSPARENT

• PARTICIPATION AT SCM FORUM



CONCLUSION

• MANAGEMENT SHOULD BE ACTIVELY INVOLVED IN ALL ASPECTS OF MUNIC

• FOCUS ON BASICS

• “IF THE ONLY TOOL YOU HAVE IS A HAMMER, YOU TEND TO SEE EVERY PROBLEM AS A NAIL” ABRAHAM MASLOW

• PERSPECTIVE (INFO, DISTANCE, TIME)



CONCLUSION (CONT)

• SHOULD WORK TOWARDS ACHIEVING CLEAN AUDITS TO ENSURE CITIZENS THAT GOVERNMENT RESOURCES HAVE BEEN EFFECTIVELY USED FOR THE PURPOSES INTENDED



THANK YOU

PRESENTATION BY

MUNICIPAL MANAGER

HENRY PRINS

TEL 022 4338410

CELL 0832935329

EMAIL [email protected]

WEST COAST DISTRICT MUNICIPALITY

LONG STREET, MOORREESBURG

west coast district municipality

Documents