Leadership and Governance Challenges faced by the Public
Leadership and Governance Challenges faced by the Public Sector
SAICA DESIGNATIONS CA(SA) AGA(SA) AT(SA)
WHICH LEADERSHIP AND GOVERNANCE STRUCTURE? PUBLIC SECTOR AUDIT COMMITTEE
PUBLIC SECTOR AUDIT COMMITTEE FORUM (PSACF) • Develop Guidance Papers for Public Sector Audit Committee Members • Maintain a database of suitably qualified individuals that would like to serve on public sector audit committees • Host annual round table discussions for audit committee members • Advertising vacancies for public sector audit committee members Visit PSACF website at www. psacf. co. za
Members
#1: Role Clarity • The roles of the audit committees and other committees, such as the finance committee, risk committee (where separate), municipal public accounts committee and performance committee, should be clarified to minimise overlap and promote the effective use of these structures. • The terms of reference is the document that gives the audit committee direction and focus with respect to its roles and responsibilities to its stakeholders. It should be clearly written and define the expectations of the audit committee.
#2: Independence • The independence of the audit committee may be impaired due to previous/current relationships of audit committee members or the audit committee as a whole and political standing, among other factors.
#3: Attracting member with relevant Knowledge, skills and experience • Minimum competency levels not applicable to audit committee members • Non-payment of audit committee members who are currently working in the public service • Audit Committee Remuneration • Differences in rates • Differences in practices for payment of preparation time
#4: Lack of commitment from members • Preparation for meetings • Reading documents prior to meetings • Attendance of and participation in meetings
#5: Quality of information provided by management • • Incomplete submissions Inaccurate submissions Late submissions Inappropriate representatives
#5: Quality of information provided by management • • Incomplete submissions Inaccurate submissions Late submissions Inappropriate representatives
Audit Committee Competency Framework • Audit committee composition • Size • Membership • Independence • Consideration for new members • Rotation of members • Competencies of an effective chair • Competencies of members • Ongoing assessment and evaluation • Public Sector Audit Committee Competency Framework Checklist Guideline www. psacf. co. za
THANK YOU Julius Mojapelo Senior Executive: Public Sector @saica_ca_sa #CApublicsector juliusm@saica. co. za
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