Local Government Specialist Terms of reference - NWPG · LOCAL GOVERNMENT FINANCE MANAGEMENT SPECIALIST ... dimensions of the municipal accountability cycle, ... 2.3.1 Establish and

Second Floor, Garona Building, Mmabatho Private Bag X2060 MMABATHO 2735 www.treasury.nwpg.gov.za

Together moving the Bokone Bophirima forward.

Enquiries: M J Nengovhela Tel: 018 388 2142 Fax: 018 388 1852 Email: [email protected]

MUNICIPAL FINANCIAL MANAGEMENT

TERMS OF REFERENCE

LOCAL GOVERNMENT FINANCE MANAGEMENT SPECIALIST/EXPERTS

1. Introduction The purpose of these Terms of Reference (ToR) is to define requirements for theappointment of retired local government finance officials/experts/ Technical Advisors as Municipal Financial Management Specialists for North West Provincial Treasury for a period of two years.

Technical Advisors will be based atNorth West Provincial Treasuries and municipalities to capacitate, guide and assist in the development of officials working within municipal Budget and Treasury Offices (BTO) and North West Provincial Treasury’s municipal finance management unit. The aim of this Programme is to progress the implementation of the broader financial management reform objectives of National Treasury (NT), encompassing all the various dimensions of the municipal accountability cycle, from strategic planning, budgeting , in year implementation, monitoring and evaluation, annual financial statements, annual reporting, asset management, supply chain management, internal auditing, risk management and oversight.

2. Context

As a result of persistent poor performance of municipalities over the past fifteen years, numerous support programmes and interventions have been initiated by both the department in an effort to improve the capacity of local government, to address inadequate service delivery issues and enhance good governance through better accountability and transparency. 3. Overall Objective of the Programme

• Assist in contributing towards the financial viability and sustainability of municipalities; • Improved capacity of municipalities and to Implementthe MFMA; • Improved capacity of NW Provincial Treasury’s municipal finance management unit to

Implementation of the MFMA by municipalities; • Improved overall compliance to the MFMA by municipalities; and


• Overall improved financial management performance in municipalities.

4.Scope of the Work The role of the Technical Advisor/ Specialist is to provide the municipality and the NW Provincial Treasury with advice and support focused on building capacity as well as guidance and technical support in the implementation of the MFMA.The support and Technical advice will focus on the following MFMA functional areas:

§ Municipal Budgets § Municipal Financial Management & Reporting § Municipal Revenue Management § Municipal Financial Assets & Liability Management § Finance Governance & Performance Management § Supply Chain Management and Assets Management § Other

o AFS & Municipal Audit Process and the Annual Report o Monitoring MFMA Compliance o Institutional Functionality of the Governance, Institutional & Management

Components – Internal Audit, Audit Committee, MPAC, Municipal Council, the

Budget & Treasury office o General Treasury Matters – MFMA System of Delegations, Financial

Misconduct, Resolutions to Financial Problems o The implementation of the MFMA Regulations

The support plan to municipalities and municipal finance unit will revolve around the above mentioned key performance areas. 5. FOCUS FUNCTIONAL AREA Key Performance Area

Function

Budget Management 1. Monitor the implementation of the budgeting framework by municipalities

2. Provide guidance on budget planning and implementation.

3. Monitor, evaluate and report on budget implementation (eg) IYM’s

4. Compile and monitor implementation of the Financial Recovery Plan

Accounting and Reporting

1. Promote implementation of accounting standards (GRAP)

2. Monitor compliance with the reporting requirements

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3. Implementation of SCOA

4. Provide Audit support

5. Analysis and Monitoring of the audit action plan 6. Monitoring compilation of AFS and Annual Report 7. Monitoring Day to Day Accounting operations over the GL and control Accounts 8. Improve Control framework and environment

Financial Assets and Liabilities

1. Monitor, evaluate and report on financial asset management – Debtor, cash and cash equivalents and all financial instruments

2. Monitor, evaluate and report on liability management – Utility debts - creditors

3. Monitor, evaluate and report on revenue management.

Supply Chain and Assets Management

1. Monitor, evaluate and report on compliance with Municipal Supply Chain Management and Asset Management Regulations.

2. Monitor remedial actions, and report on the implementation thereof

3. Provide advice and guidance on SCM and AM issues

4. Monitor U,I,F&W Expenditure register

Governance and Institutional Capacity

1. Coordinate reporting on MFMA implementation.

2. Monitor evaluate and report on Risk Management and Internal Audit compliance.

3. Monitor MFMA governance and compliance to improve municipal financial management systems and processes.

4. Support institutional development and capacity building programs in conjunction with COGTA

5. Provide advice and guidance to municipalities in the development of financial policies.

6. MFMA Compliance Coordination.

6. SUPPORT PLAN The specialist will build capacity to the learners, provincial Treasury Officials and municipalities. The support plan will focus on the following:


REF NO

MFMA FUNCTIONAL AREA / OUTPUTS / ACTIVITIES

1 BUDGET MANAGEMENT 1.1 BUDGET ADMINISTRATION 1.1.1 Prepare and adopt Budget Implementation Plan - including time schedule with key

deadlines & submit to NT [MFMA 21(1)(b) & 53(1)(b)]

1.1.2 Establish and ensure regular and effective meetings of Budget Steering Sub-Committee on the budget process [Municipal budget Regulations Ch 2 Clause 4]

1.2 BUDGET PREPARATION 1.2.1 Coordinate budget process, review IDP & budget-related policies to ensure process &

reviews are consistent & credible [MFMA 62(1)(f) & 79(1)(c)]

1.2.2 In preparing the budget, take into account changes to IDP & national & provincial policy; undertake funding compliance test for credibility of budget; & provisions relating to budget format, revenue certification, capital expenditure, notification of fund transfers & stakeholder consultation (Note adherence to Budget Regulations & Budget Schedules & Formats)

1.3 BUDGET TABLING 1.3.1 Table budget and all supporting documentation [MFMA 16(2), 17 & 87(3)]

1.3.2 After tabling of budget, make public & invite community to make representations [MFMA 22]

1.3.3 Submit print & electronic versions of the tabled budget to NT & relevant PT [MFMA 22]

1.3.4 Consider & respond to budget submissions [MFMA 23 & 68]

1.4 BUDGET APPROVAL 1.4.1 Consider & approve budget, by a formal resolution; incl capital appropriations, taxes &

tariffs, IDP & budget policies, performance objectives [MFMA 16(1), 24(1) & (2) & 53(1)(c)(i)]

1.4.2 Submit approved budget to NT & PT [MFMA 24(3)]

1.5 BUDGET IMPLEMENTATION 1.5.1 Submit draft SDBIP to the Mayor [MFMA 69(3)(a)]

1.5.2 Approve SDBIP [MFMA 53(1(c)(ii)]

1.5.3

Submit annual performance agreements to Mayor [MFMA 69(3)(b)]

1.5.4 After approval of SDBIP, make public monthly revenue & expenditure projections & quarterly targets & performance indicators [MFMA 53(3)(a)]

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1.5.5 Make public performance agreements, submit to Council & the Provincial MEC for Local Government [MFMA 53(3)(b)]

1.5.6 Where necessary, prepare & table and adjustments budget in the appropriate format [MFMA 28, Municipal Budget Regulations Ch 2 Part 4]

2 FINANCIAL ASSETS AND LIABILITIES (INCLUDING CASH, BANKING, INVESTMENTS AND BORROWINGS)

2.1 CASH 2.1.1 Establish and implement cash management policy [MFMA 13(2) - note: policy to be

reviewed annually during budget discussions] 2.1.2 Daily cash managed effectively

2.1.3 Monitor cash flow of municipality

2.1.4 Cash book, general ledger, bank reconciled

2.2 BANKING 2.2.1 Table consolidated report of all withdrawals & submit copies to PT & AGO [MFMA 11(4)]

2.3 INVESTMENTS 2.3.1 Establish and implement investment policy [MFMA 13(2) - note: policy to be reviewed

annually during budget discussions] 2.4 BORROWINGS 2.4.1 Ensure all short-term debt is only incurred in terms of s45 of MFMA

2.4.2 Ensure all long-term debt is only incurred in terms of s46 of MFMA

2.4.3 Maintain & update a register of liabilities (current, non-current & contingent) [MFMA 63] 2.5 REVENUE MANAGEMENT 2.5.1 REVENUE MANAGEMENT SYSTEM 2.5.2 Ensure revenue systems comply with s64(2) of the MFMA -

- in accordance with MSA & policies - revenue is calculated monthly - where appropriate, accounts are prepared monthly - all money is deposited promptly into the bank - system recognises income when earned, debtors & receipts - internal control system for debtors / revenue is developed - interest is charged on arrears, unless otherwise agreed - revenue and debtors ledgers are reconciled monthly - other agency arrangements reconciled monthly - clearing of suspense accounts

2.6 REVENUE MANAGEMENT SECTION


2.6.1 Coordinate activities of Revenue Management Section - - Cashiering function - Customer Services - Billing - Collection - Debt Recovery - Bad debts - Indigent Register - Meter Reading (incl disconnections & reconnections) - Call Centre (where applicable)

2.7 EXPENDITURE MANAGEMENT 2.7.1 EXPENDITURE MANAGEMENT SYSTEM 2.7.1.1 Ensure expenditure systems comply with s65(2) of the MFMA -

- that includes procedures for approval, authorization, withdrawal, payment of funds - system recognizes expenditure when incurred, creditors & accounts for payment - internal control system for creditors / expenditure is developed - payments are made appropriately & within 30 days of invoice - all statutory commitments are duly paid - bulk electricity & water payments - payment disputes are recognized and appropriately resolved - working capital is managed effectively within a framework - expenditure and creditors ledgers are reconciled monthly - salaries reconciled monthly - clearing of suspense accounts

2.7.1.2 Report to Council on all expenditure on staff salaries, wages, allowances & benefits [MFMA 66]

2.7.2 ACTUAL EXPENDITURE AGAINST BUDGET 2.7.2.1 Ensure all expenditure is incurred in terms of the budget & within limits of budget votes

[MFMA 69]

2.7.3 ACTUAL EXPENDITURE BEYOND CURRENT FINANCIAL YEAR 2.7.3.1 Ensure expenditure with implications beyond current financial year is managed in

accordance with s33 of MFMA

2.7.4 UNAUTHORIZED, IRREGULAR OR FRUITLESS AND WASTEFUL EXPENDITURE 2.7.4.1 Authorize unforeseeable & unavoidable expenditure if considered appropriate [MFMA 28(c)

& 33(2)(a)]

2.7.4.2 Take steps to recover actual unauthorized, irregular or fruitless & wasteful expenditure [MFMA 32]

2.7.4.3 Inform Council & Mayor of actions likely to result in unauthorized, irregular or fruitless & wasteful expenditure [MFMA 32(3)]

2.7.4.4 Inform Mayor, the Provincial MEC for Local Government and Auditor-General of details of unauthorized, irregular or fruitless & wasteful expenditure [MFMA 32(4)]

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3 ACCOUNTING, GRAP & REPORTING (INCLUDING AFS) 3.1 IN-YEAR REPORTING 3.1.1 Submit monthly budget statements (s71 reports) in the prescribed format to Mayor, PT &

NT [MFMA 71]

3.1.2 Review monthly budget statements & advise of real or potential financial issues [MFMA 71]

3.1.3 Submit quarterly budget and financial report to Council [MFMA 52(d)]

3.1.4 Submit mid-year budget & performance assessment to Mayor, PT & NT [MFMA 72]

3.1.5 Ensure all budget-related information placed on municipal website [MFMA 75]

3.1.6 Ensure all other information required is placed on municipal website [MFMA 75]

3.2 END-OF-YEAR REPORTING 3.2.1 Prepare annual financial statements in accordance with s122(1) of MFMA and in line with

GRAP standards, with disclosures as required by s123 to s125, together with the municipal audit file

3.2.2 Implement systems to ensure full & proper records of the finances of the municipality are kept in accordance with norms & standards

3.2.3 Submit annual financial statements to Auditor-General [MFMA 126]

3.2.4 Address any issues raised by Auditor-General in the audit report [MFMA 121(3)(g)]

3.2.5 Prepare annual report in accordance with C12 of MFMA containing information required by s121 & in terms of new formats

3.2.6 Table annual report [MFMA 127(2)]

3.2.7 Make public annual report, invite representations & submit to AGO, PT, Provincial DeCOG & NT [MFMA 127(5)]

3.2.8 Deal with annual report at Council (ensure meeting open to public & invite AGO) [MFMA 129(1) & 130]

3.2.9 Forward minutes of meeting where annual report is discussed to AGO, PT, Provincial DeCOG & NT [MFMA 129(2)(b)]

3.2.10 Adopt oversight report after consideration of annual report, containing council's comments on annual report [MFMA 129(1)]

3.2.11 Make public oversight report, submit to MPAC, provincial legislature once adopted [MFMA 129(3)]

4 SUPPLY CHAIN AND ASSETS MANAGEMENT 4.1 ASSET MANAGEMENT SYSTEM


4.1.1 Maintain appropriate systems & controls for safeguarding of municipal assets including an up-to-date assets register [MFMA 63]

4.1.2 Maintain & update asset register on a regular basis [MFMA 63]

4.1.3 Ensure appropriate accounting treatment of assets in terms of GRAP [MFMA 63]

4.2 SUPPLY CHAIN MANAGEMENT 4.2.1 SCM PROCESSES AND PLANNING 4.2.1.1 Review structures & representation of Specification Committee, Evaluation Committee,

Adjudication Committee [SCM Regulations 868 Clause 26]

4.2.1.2 Implement SCM policy & Regulations

4.2.1.3 Ensure unsolicited bids are dealt with in accordance with s113 of MFMA & Regulations

4.2.1.4 Ensure Auditor-General, PT & NT are advised when tenders are approved that were not recommended & reasons why [MFMA 114]

4.2.1.5 Prepare & implement Capital Budget Procurement Plan for 3 year appropriations

4.2.1.6 Prepare & implement procurement plan for current operating & capital expenditure

4.3 CONTRACT MANAGEMENT 4.3.1 Procure all contracts through the appropriate SCM processes & ensure contracts contain

matters specified in s116 of MFMA - all contracts in writing, terms & conditions stipulated

Maintain & update contracts register on a regular basis

Establish & maintain system to review contracts prior to conclusion

4.3.2 Review contracts at least every 3 years

4.3.3 Monitor performance of contractors every month

4.3.4 Report regularly to Council on management of contracts & performance of contractors

5 INTERNAL AUDIT & AUDIT COMMITTEE 5.1 INTERNAL AUDIT

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5.1.1 Establish internal audit unit, & ensure effective operations to ensure municipality has & implements – - effective, efficient & transparent systems of internal control & audit, financial systems, prescribed norms & standards, risk management - accurate AFS - tariff policy, rates policy, credit control & debt collection policy - internal regularity audits & risk identification - MFMA compliance

5.2 AUDIT COMMITTEE 5.2.1 Establish Council Audit Committee, & ensure effective operations to ensure municipality

has & implements - - appropriate systems & processes conducive to good financial governance & compliance - accurate AFS - audit plans - audit compliance - oversight report

6 OTHER MATTERS 6.1 FINANCIAL MANAGEMENT GRANT 6.1.1 Ensure FMG Support Plan (budget) prepared, adopted & submitted to PT & NT

6.1.2 Submit monthly progress reports on FMG 6.1.3 Review reports & advise on alignment of spend to achievements

6.2 IMPLEMENTATION PRIORITIES RETURN FORMS 6.2.1 Monitor completion of MFMA implementation priorities

6.3 30 MFMA MONITORING INDICATORS 6.3.1 Monitor progress toward completion of MFMA Monitoring Indicators

6.4 FINANCIAL MANAGEMENT CAPABILITY MATURITY MODEL (FMCMM) 6.4.1 Monitor progress toward completion of FMCMM

7. Other Matters 7.1 Financial Management

• In respect of the relevant municipality, assist with the provision of strategic, tactical and

operational advice on financial management disciplines, including but not limited to:

o Financial Accounting

o Management Accounting


o Revenue and Expenditure Management

o Supply Chain Management

o Internal Control

o Enterprise Risk Management

o Internal Audit and Audit Committee

o External audit processes

o Performance monitoring and evaluation

o Capacity Building

7.2 Regulatory, Policy, Governance Frameworks – Strategic, Tactical, Operational Advice

• Advice on submission with financial implications to the relevant CFO, MM, Council relevant

provincial treasury and NT;

• Provide advice on strategy, policy and governance matters in relation to the public finance

matters;

• Provide advice on responses to draft: bills, regulations, treasury instructions, strategy

documents, policy documents, plans, reviews, frameworks and reports;

• Advice on the reporting of inability to comply with prescribed requirements;

• Assist with the development of tools and techniques for public finance management;

• Assist with the management of risks and prevention of fraud and corruption; and

• Develop best practice governance documents, procedures, policies, instruments, plans and

frameworks and document relevant case studies.

7.3 Skills Development and Capacity Building

• Assist with the determination of capacity development needs and facilitate training, where

appropriate; and

• Conduct coaching and mentoring of interns and other identified municipal staff.

7.4 Knowledge Management

• Assist with the monitoring of reports with the aim to identify issues that may affect financial

management within the municipality;

• Assist with the introduction of maintenance of an information back-up and recovery plan;

• Assist with the introduction and maintenance of a filling system and business continuity plan;

• Assist with the maintenance of a repository of documents on a filling system and website;

• Assist with the retention of financial information as per prescripts;

• Assist with the distribution to management and staff;

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• Assist with the maintenance of a database of financial information in respect of the

municipality.

7.5 Oversight Bodies, Committees and Forums

• Assist with the coordination, evaluation and preparation of:

o Relevant provincial treasury, NT and AGSA visit responses;

o IDP and SDBIP responses;

o Council and related Council Committees responses;

o Parliament and Legislature responses; and

o Internal Audit and Audit Committee responses.

• Assist with the recording/implementation/monitoring/reporting on resolutions resulting from

oversight bodies.

• Where appropriate, attend, in observer status only, relevant committees and forum meetings.

7.6 N W Provincial Treasury Support

The following project services and deliverables are required:

General Services

• Assist with the adoption and implementation of the Support Plan within the provincial

treasury;

• Advise HOD and MFMA Coordinator on operational, tactical and strategic financial

management matters including solving relating to the MFMA monitoring, supporting and

oversight role;

• Coordinate information flow between NW provincial treasury and municipality;

• Provide the necessary support and advice to implement the support agreement between

the relevant provincial treasury and municipalities;

• Assist in the coordination of delegations by the Select Committee on Finance and other

parliamentary monitoring delegations; and

• Assist with the identification of potential risks within the relevant provincial treasury MFMA

Coordinating unit and report to the HOD, MFMA Coordinator and recommend remedial

strategies.

7.7 Financial Management

• In respect of the NW Provincial Treasury, assist with the provision of strategic, tactical and

operational advice on the monitoring, supporting and oversight role of the provincial treasury

relating to financial management disciplines, including but not limited to:


o Financial Accounting

o Management Accounting

o Revenue and Expenditure Management

o Supply Chain Management

o Internal Control

o Enterprise Risk Management

o Internal Audit and Audit Committee

o External audit processes

o Performance monitoring and evaluation

o Capacity Building

7.8 Regulatory, Policy, Governance Frameworks – Strategic, Tactical , Operational Advice

• Provide advice on strategy, policy and governance matters in relation to public finance

matters;

• Provide advice on responses to draft: bills, regulations, treasury instructions, strategy

documents, policy documents, plans, reviews, frameworks and reports;

• Assist with the development of tools and techniques for public finance management; and

• Develop best practice governance documents, procedures, policies, instruments, plans and

frameworks and documents relevant case studies.

7.9 Skills Development and Capacity Building

• Assist with the determination of capacity development needs and facilitate training, where

appropriate; and

• Conduct coaching and mentoring of identified provincial treasury officials.

7.10 Knowledge Management

• Assist with the maintenance of a repository of documents on a filling system;

• Assist with the retention of financial information as per prescripts;

• Assist with the preparation and distribution of publications as per the legislative

requirements; and

• Assist with the maintenance of a database of financial information on the respective

delegated municipalities.

7.11 Oversight Bodies, Committees and Forums

• Assist with the coordination, evaluation and preparation of:

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o Mid-year performance assessment engagements;

o Budget Benchmark engagements;

o Provincial CFO Forums;

o Quarterly MFMA Coordinator meetings;

o Parliament and Legislature responses; and

o Other Joint Departmental forums as required.

• Assist with monitoring of implementation and reporting on resolutions resulting from oversight

bodies.

8. Provincial Treasury Technical Advisors

• Signed MFMA Support Plan;

• Consolidated Monthly Status Reports on progress made with implementation of Support

Plan;

• Review of MFMA Coordination activities with recommendations;

• Detailed assessment of knowledge and technical capacity of all provincial treasury MFMA

officials, with recommendations and formal programme of training and development;

• Reviewed and approved written system delegations as it refers to the MFMA;

• Signed MoU between provincial treasury and DCoG with clear roles, responsibilities and

planned activities in terms of the MFMA;

• Consolidated Budget Implementation Plan Assessment;

• Documented procedures and guidelines for evaluation of financial position of municipalities

in terms ability to incur new, and maintain current long-term debt;

• Consolidated review report on municipal Cash management and Investment Policies;

• Quarterly consolidated action plans to address municipal financial problems;

• Consolidated review report on municipal audit action plans;

• Consolidated Annual Report Assessment;

• Consolidated municipal cash-flow management report with recommendations;

• Consolidated municipal expenditure management evaluation report with recommendations;

• Consolidated SCM Committee functionality evaluation report;

• Consolidated review report on municipalities Supply Chain management policies;

• Consolidated review report on municipal procurement plan

• Consolidated review report with recommendations on functionality of municipal risk

preventative measures;

• Consolidated review report with recommendation on functionality of municipal internal audit

units and audit committees;


• Consolidated review report on financial Management Capability Maturity Model (FMCMM);

and

• Consolidated review report with recommendations on municipal Standard Chart of Accounts

(SCOA) implementation plans.

• Other outputs as may be requested by the PMU.

9. Timelines for Availability

The Technical Advisor is required to be available full time basis for the period two (2) years.

10. Location and Duration of the Programme

The Technical Advisor will be expected to dedicate his/her full-time work for the duration of the

Programme, unless otherwise agreed by the parties and will be required to be based in the

offices of supported municipalities when required and NW Provincial Treasury over the period

specified.

11. Budget

The budget for these Technical Advisor positions is limited to the annual remuneration

packages as well as pre-authorised travel and subsistence costs according to department of

finance rules. Policies and procedures of the Department of Finance will apply for payments, the

administration of remuneration, and travel and subsistence.

12. Reporting

The Technical Advisor will for the duration of the project report directly to the Chief Director

Municipal Finance or his/her delegate in terms of day-to-day operational requirements and

performance management.

The Technical Advisor shall further be required to complete a monthly Progress Report in a

prescribed format to report on progress attained toward achieving the work outputs contained in

the agreed Support Plan.

The monthly Provincial Treasury Progress report must be provided to the Chief Director MFM every month.

11. Qualifications

Minimum B Com or equivalent degree and 10 years senior financial management experience

preferably in local government and /or

Minimum 4 year diploma in financial management or similar discipline and 15 years senior

financial management experience preferably in local government finance.

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12. Competencies

• Specialist Knowledge and experience of Local Government legislation and regulations

including but not limited to the MFMA, Municipal Systems and Structures Acts, Division

of Revenue Act and Municipal Property Rates Act;

• Through knowledge and understanding of NT and CoGTA Guidelines in respect of

processes in municipalities;

• Demonstrated ability in consulting and advisory services (internal and external);

• Computer literate and demonstrable advanced Microsoft – Word, Excel and Power

Point Skills;

• Strong project management and leadership capabilities;

• Innovative, creative and willing to adopt fresh approaches in solving problems;

• Proven experience in managing large projects and deliverables of team outputs;

• Demonstrable all-round financial exposure and working related knowledge of

Management and financial accounting, supply Chain Management, Internal Audit and

Risk Management

• Good understanding of audit process and requirements (preferably from AGSA);

• Fluent in spoken and written English and excellent technical report writing skills;

• Good communication skills;

• Must be prepared to be based in remote rural areas; and

• Proven ability to build capacity and transfer skills.

Technical queries related to this ToR should be addressed to the Mrs Linda Nengovhela at

018 388 4321

Submission details: Closing Date: 30 January 2015 Department of Finance Recruitment Section, 2nd Floor, East Wing, Ga – Rona Building Mmabatho Private Bag X2060 MMABATHO 2735


Documents

Local Government Specialist Terms of reference - NWPG · LOCAL GOVERNMENT FINANCE MANAGEMENT SPECIALIST ... dimensions of the municipal accountability cycle, ... 2.3.1 Establish and