OFFICE OF THE MUNICIPAL MANAGER
“Every municipality is obliged to prepare an IDP Review in terms of Chapter 5 of the Municipal Systems Act (2000). The Act requires of municipalities to review the achievements of the implementation of the IDP and to adjust in terms of the needs of the community and in terms of the resources available to the municipality.This IDP review 2015/2016 provides for key performance indicators and key performance areas that will serve as a basis for monitoring the Hantam Municipality’s progress in rendering services to its community. This IDP document is reviewed inconsultation with communities and stakeholders in ensuring that it is dynamic in addressing the needs of the Hantam community.The IDP review 2015/16 will provide us with the tool to budget and measure our performance and keep track of progress in implementing development projects and spending the municipal budgets. This process will therefore assist the Hantam Municipality to achieve its vision of having an improved quality of life for its citizens and to make Hantam “A Place of Prosperity for All”We will continue to serve people in ensuring that their needs are being met. I trust that the implementation of this IDP willcreate a better community that we will strive to build.I would also like to express gratitude to all those who have participated through our IDP engagements and made valuable contributions in the development and implementation of our IDP.”
Internal Auditing is an independent, objective, assurance and consulting activity that adds value to and improves an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
INTERNAL AUDITORS are grounded in professionalism, integrity, and efficiency. They make objective assessments of operations and share ideas for best practices; provide counsel for improving controls, processes and procedures, performance, and risk management; suggest ways for reducing costs, enhancing revenues, and improving profits; and deliver competent consulting, assurance, and facilitation services.
Sitting on the right side of management, modern-day internal auditors are consulted on all aspects of the organization and must be prepared for just about anything. They are coaches, internal and external stakeholder advocates, risk managers, controls experts, efficiency specialists, and problem-solving partners. They are the organization’s safety net.
INTERNAL AUDITORS step up with bold ideas to solve tough problems. They continually strive for the best, constantly polish their skills, and consistently model integrity and ingenuity. Internal auditors are, to a great extent, key to an organization’s success in today’s business world. They are involved in reviewing an organization’s processes, operations, and goals. They provide objective, independent, professional advice to all levels of management and pave the path toward continuous improvement. They are explorers, reporters, and analysts. They discover, interpret, and question. The most valuable and effective internal auditors anticipate and stay abreast of business trends and continually update their knowledge to stay on top of key issues. They are proactive, responsive, and reactive.
Internal auditors bring a variety of skills to the organization. Their education and expertise differ broadly. They come from diverse areas such as operations, finance, performance management, risk management, fraud investigations and information technology. And today’s internal audit professionals, regardless of their industry, have extensive knowledge of computer systems and the Internet, and work to mitigate risks posed to the organization by technology and electronic commerce. Professional internal auditors address problems and improve performance.
They help the organization function at the highest, most ethical level and constantly cast their eyes to the horizon to scan for signs of trouble. They bring to the organization a sense of well-being and comfort, providing the secure knowledge that if there are glitches, they’ll find them. For the internal audit activity to provide the greatest level of support, best practice suggests that the internal auditors should report to the Accounting Officer for administrative interface and support and to the Performance and Audit committee of the Council for direction and accountability.
Risk assessment, as defined by The IIA’s International Standards for the Professional Practice of Internal Auditing, is “a systematic process, for assessing and integrating professional judgments about probable adverse conditions or events.” Risk impacts an organization’s ability to compete and to maintain its financial strength and the quality of its products and services. It’s the internal auditor’s job to identify all auditable activities and relevant risk factors and to assess their significance.
CONFIRMING information is a critical step in the audit process, and if compromised, diminishes the value of the audit. It is the responsibility of the internal auditors to keep their organizations informed of all discoveries and research observations made during the audit process. They must be careful to keep the lines of communication open with those in the organization who are directly involved in the audit. Therefore, the importance of excellent communication skills to the professional internal audit practitioner cannot be overemphasized.
The internal auditors must be well versed in the objectives of their organization and have the ability to examine and analyse to make sure operations are effective. After investigating the process, they report their findings and recommend appropriate courses of action. They may also have to establish criteria, based on their objective opinion, for meeting their organization’s goals.
COMPLIANCE — conformity to fulfil obligations in the audit world — ensures that organizations adhere to rules and regulations. When those in an organization ignore guidelines, the structure can crumble. Part of an internal auditor’s job is to review compliance and ensure that the structure stays solid.
The internal auditors evaluate control efficiency and effectiveness and determine whether the controls in place are adequate to mitigate the risks that threaten or have the potential for threatening the organization.
By reviewing the means used by the organization to protect its assets, internal auditors can determine whether appropriate safeguards are in place. They must be able to evaluate the procedures used to safeguard assets from different types of losses like theft, fire, activities that are illegal or improper, and exposure to elements.
Today’s organizations squeeze the most they can from all their resources — and as indicated, the internal audit process is clearly among the most critical. In addition to their responsibility for assessing and recommending internal controls, internal auditors’ skills in risk management and their broad-based perspective of the municipalities, position them as a valuable resource for strong corporate governance. As a result, informed senior managers and councils are relying on internal auditors for advice and counsel on everything from analysis of operations and assessment of risk to recommendations for improved corporate governance. Moreover, internal audit practitioners are increasingly being challenged to apply their expertise in much broader ways than ever before — such as evaluating emerging technologies, detecting and deterring fraud, analysing the effectiveness of policies and procedures, and identifying opportunities to save you and your shareholders money. When it comes to adding value across the board, there’s no better resource than internal auditing.
PERFORMANCE AND AUDIT COMMITTEE
GOVERNANCE is the system by which municipalities are directed and controlled. It includes the rules and procedures for making decisions on corporate affairs to ensure success while maintaining the right balance with all stakeholders’ interest.
Responsibility for corporate governance is spread among several organizational directorates. The cornerstones of effective governance are the council, directors, the internal auditors, and the external auditors. No single committee of the council is more focused on or better in tune with governance than the performance and audit committee.
What is the audit committee’s role in governance? In a nutshell, the audit committee should provide oversight of financial reporting, risk management, internal control, compliance, ethics, management, internal auditors, and the external auditors.
Some detailed audit committee responsibilities include:
- Ensuring that financial statements are understandable, transparent, and reliable.
- Ensuring the risk management process is comprehensive and ongoing, rather than partial and periodic.
- Helping achieve an organization wide commitment to strong and effective internal controls, emanating from the tone at the top.
- Reviewing corporate policies relating to compliance with laws and regulations, ethics, conflicts of interest, and the investigation of misconduct and fraud.
- Reviewing current and pending corporate-governance-related litigation or regulatory proceedings to which the organization is a party.
- Continually communicating with senior management regarding status, progress, and new developments, as well as problematic areas.
- Ensuring the internal auditors’ access to the audit committee, encouraging communication beyond scheduled committee meetings.
- Reviewing internal audit plans, reports, and significant findings.
- Establishing a direct reporting relationship with the external auditors.
The audit committee and the internal auditors are interdependent and should be mutually accessible, with the internal auditors providing objective opinions, information, support, and education to the audit committee; and the audit committee providing validation and oversight to the internal auditors.
The audit committee’s charter is its blueprint for operations. Highly customized to best meet the needs of the municipalities, mission, and culture, the charter should clearly delineate audit committee processes, procedures, and responsibilities that have been sanctioned by the council.
AS PART OF its oversight responsibilities, the audit committee should:
- Review and concur the chief audit executive (CAE) appointment, replacement, reassignment, and dismissal.
- Review/approve the internal audit charter and ensure its compatibility with that of the audit committee.
- Review the audit plan and any significant changes.
- Ensure internal auditor neutrality and objectivity.
- Review the internal audit department’s budget and staffing.
- Encourage internal auditor certification and other professional development.
Meet privately with the CAE.
- Receive reports from the CAE on audit findings and information on technological advances and trends.
- Review internal auditing’s compliance with The IIA’s Standards.
IDP AND LED
The IDP is the primary planning mechanism which will guide and inform issues such as planning, budgeting and decision making.
The IDP is a legislative requirement (Municipal Systems Act of 2000), and therefore all Metro’s, Local and District Municipalities are required to embark on the process of integrated development planning.
The Corporate Services Department derives it mandate from Council’s key development objective, i.e. institutional development, the IDP. It therefore means it is largely an internally focussed department with the primary aim of employee recruitment and development and enhanced and efficient administrative systems.
Human Resource function includes a variety of activities and important among them is deciding what staffing needs the Municipality have.
Other functions include:
- Recruitment and Selection
- Training and Development
- Staff Benefits: Pension Funds; Medical Aid; Housing Subsidies; Group life; Medical Competency Tests; Counselling
- Health and Safety
- Termination of Service
- H.R. related policies
Legal Services that handles all legal aspects which have an effect on the municipality including drafting, editing of, as well as commentary on contracts and legal documents for the various departments within the Municipality. It also renders legal advisory and support services to the different departments within the Municipality and conducts research regarding specific legal aspects and changed legislation affecting the municipality. Furthermore Legal Services acts as compliance officer in respect of all contracts and relevant legislation and regulations.
- COUNCIL SUPPORT
- RECORDS MANAGEMENT
Directorate is responsible for the effective, and efficient management of the council’s finances.
This directorate operates within the ambit of the applicable legislation and prescriptions related to Local Government Finance, of which the following legislation are the most important ones:
- The constitution of RSA
- The MFMA
- Local government systems Act
- Municipal structures Act
- The public office bearers Act
- Budget reform programme of National Treasury
- Circulars issues by the Auditor General, province, and national Treasury
- Council resolutions
- Council policies and powers delegated by council.
This directorate also reports on the following financial reports:
- Tariff book
- Capital and operational projects – Quarterly
- Meduim term expenditure revenue framework
- Monthly financial reporting
- Quarterly reports
- Midyear performance review
- Financial Statements
- Auditor General report
- Long term borrowings
- Cash Flow
- Statutory Returns
The directorate is composed of the following section :
- Supply chain Management
- Budget and reporting
The Department’s goal is to provide recreational and community services to all the residents of the Hantam area. This will be achieved by developing and maintenance of recreational facilities by establishing a user friendly, green, clean, neat and beautify town by developing and maintaining the cultural heritage of the towns and to render a uniform cleansing service to all residents of the Hantam. The Department’s aim is to render the optimum standard of service delivery, which is accessible, effective and efficient to the whole community by using our resources and our budget efficiently, and cost effectively.
- Traffic & Law Enforcement
- Town Planning
- Building Control
- Sports Administration and Libraries
- Property Management
- Human Settlements
- Sustainable Development
- Waste management
The Technical Services department’s main objectives and functions are to provide the basic needs of the community as well as maintain the standard of service provided. The department focuses on issues surrounding:
- Civil works
- Project Management Unit