MUNICIPAL AUDIT SUPPORT PROGRAMME MASP www salga org

MUNICIPAL AUDIT SUPPORT PROGRAMME (MASP) www. salga. org. za

TABLE OF CONTENTS 1. SALGA Strategy 2. Municipal Audit Support Programme (MASP) 3. 2017/18 MFMA Outcomes 4. MASP Support Plan 5. Stakeholder Matrix www. salga. org. za

SALGA STRATEGY AT A GLANCE (2017 -2022) MANDATES 1. Lobbying, Advocacy & Represent GOAL 2: Good Governance & Resilient Municipal Institutions 2. Employer Representation 3. Capacity Building 4. Support and Advice GOAL 1: Sustainable, Inclusive Economic Growth Underpinned by Spatial Transformation Inspiring Spatial Justice & Social Justice through Integrated Management of Space, Economies & People • Information and Communication Technology • Data Intelligence • Innovation • Research and Knowledge Management 5. Strategic Profiling 6. Knowledge and Information Sharing VALUES Responsive Innovative GOAL 3: Financial Sustainability of Local Government & Greater Fiscal Equity • Effective and Efficient Administration • Marketing and Communication • Strategic Partnerships Dynamic Excellence 3

STRATEGIC OBJECTIVES Sub Cluster Portfolio Municipal Finances, Finance, Fiscal Policy Revenue and Enhancement Economic & Treasury Growth Advisory Services Strategic Goal 2: Good governance and resilient municipal institution Strategic Objective Impact 5 year Outcome To strengthen Steadily Reduction of oversight and growing local disclaimer accountability economies, municipalities for effective, significantly to a maximum accountable reduced of 10% of and transparent poverty and municipalities leadership relative by 2022 practices politically stable communities KPI No 26 2019/20 Key Performance Indicator Percentage of significant audit findings reduced in municipalities by 31 March 2020 www. salga. org. za 4

MUNICIPAL AUDIT SUPPORT PROGRAMME (MASP) • Auditor-General identified root causes leading to poor audit outcomes in municipalities – Slow or no response by leadership, Inadequate Consequence Management, Instability, vacancies and competencies of key personnel. • In responding to the challenge, SALGA has conceptualised the MASP programme, a multi-disciplinary approach founded on four basic pillars of support i. e. Leadership, Governance, Institutional Capacity and Financial Management. MASP aimed at supporting municipalities that have obtained poor audit outcomes based on the Auditor-General report. Lack of urgency to address risks and improve internal controls Disregard for compliance Inaction due to lack or poor performance management – culture of no consequences Political instability, high vacancy rate and dependency on consultants www. salga. org. za

KEY OR EMERGING RISKS § Non-compliance with SCM policies and SCM regulations giving rise to Unauthorised, Irregular, Fruitless & Wasteful Expenditure § Records management § Poor to no Consequence Management and Accountability § Municipal Standard Chart of Accounts (m. SCOA) § Financial Health indicators § MFMA non-compliance www. salga. org. za 6

PROVINCES WITH HIGHEST PROPORTION OF POOR AUDIT OUTCOMES § North West § Free State § Northern Cape § Limpopo § Eastern Cape www. salga. org. za 7

MASP SUPPORT PLAN • Developing customised support plans for municipalities that covers all 4 pillars of the MASP by considering the following documents: – Audit Action Plan or Audit Improvement Plan of the municipality – Audit Report of the municipality – Management Report of the municipality • Engaging key stakeholders to discuss and share support plans in order to agree on an integrated multi-stakeholder support plan for a municipality setting out clear responsibilities per stakeholder. • Implementing MASP through a multi-disciplinary approach with key stakeholders. • Reporting progress to SALGA governance structures and other stakeholders. www. salga. org. za

MASP DELIVERY MODEL Capacity Building Handbooks Guides Accountability and Consequence Management Framework Hands-on Support Advocacy, Profiling and Lobbying Peer Learning Workshops Accredited Municipal secondments Accountability Knowledge Sharing Support & Advice The Voice Reform advocacy and lobbying Training Collaboration www. salga. org. za

STAKEHOLDER MATRIX Treasury and COGTA Professional Bodies (SAICA, CIGFARO etc. ) Audit/ Consulting Firms MASP LGSETA, Sponsors and Donor agencies Auditor. General SA Accounting Standards Board (ASB) www. salga. org. za

THANK YOU! INSPIRING SERVICE DELIVERY! www. salga. org. za 12