N6 Municipal Admin Module 6 Control over Municipalities

BONAMELO CAMPUS MUNICIPAL ADMINSTRATION N6 HLANGABEZA MT Downloaded from hlayiso.com

MODULE 6: CONTROL OVER MUNICIPAL AUTHORITIES Reasons for control measures: • Municipalities are established by central government to provide services • Funds to provide services are public funds • Employees might be tempted to steal • To ensure that actions are legal and complies with statutory policy • To identify the infringement of democratic rights of individuals • To improve the general welfare of the community • To ensure public accountability • For the executive authorities to explain their deeds Downloaded from hlayiso.com

External control:  Municipalities are authorised to provide services to satisfy community’s needs  Municipalities receive funds from higher authorities to carry out these services Downloaded from hlayiso.com

Types of control measures: • Control over the legislation of local authorities • Control over finances • Control over personnel and personnel groups • Control over administration (daily activities) • Control over municipalities acting as agents for national government Downloaded from hlayiso.com

Internal control: (i) Hierarchical structure; (ii) Council control; and (iii) Departmental control Control through the hierarchical structure of the institution: • Identifies lines of responsibility and communication • Allows for different levels of management • Officials know their supervisor and are aware of their roles Downloaded from hlayiso.com

Internal control: Council control: • Issue enforceable decisions • Demand feedback and accountability • Ratification of executive decisions and proposals • Inspections by the council • Monitor the performance of the municipality • Intervene and take corrective action if necessary Downloaded from hlayiso.com

Internal control: Departmental control: • Municipal Manager over the chief officials • Chief officials over the head of executive departments • HODs over senior officials (supervisors) in their division • Supervisors over their subordinates at all levels in the hierarchy Downloaded from hlayiso.com

Departmental control: Techniques for exercising departmental control: • Written procedures and work manuals • Prescribed standards • Centralised units for domestic and auxiliary services • Record keeping • Reports, statistics and accounts • Checking systems • Auditing; Inspections and investigations Downloaded from hlayiso.com

Voter control: Voter control:  Demand for feedback and accountability  Ratification of council decisions  Issue of decision statements  Monitoring of services and council decisions Downloaded from hlayiso.com

Areas of control: There are four basic municipal resource types where control measures should be designed and implemented: Physical resources • Examples of measures that control physical resources include inventory management, quality control and equipment control. Human resources • Human resources need control measures that employees are recruited and managed as efficiently and appropriately as possible. Informational resources • Municipal Managers and department heads are dependent on information to monitor how staff is performing and check how services are delivered. Financial resources • Municipal finances also need to have control measures in place including the constant monitoring cash flow, credit control and municipal debt. Downloaded from hlayiso.com

Types of control measures: There are four broad types of control measures that municipalities should design and implement: Strategic control • It looks at how effectively a municipality’s approach planning and policy-making has achieved the goals of its IDP. Structural control • It looks at the influence of a municipality’s organisational structure on its ability to function effectively and to deliver on its mandate. Operation control • Monitors the effectiveness of the processes that a municipality uses to transform resources into service delivery. Financial control • Monitors the financial resources of the municipality. It is important that a municipality implements financial control measures and the budget is the main control measure used. Downloaded from hlayiso.com

Characteristics of control measures: For control measures or systems to be effective, they have to be closely incorporated into the municipal planning process. They should also be flexible, accurate, timely and objective. Integration with planning • Control measures work best if people know what they are and if they are directly linked into a municipality’s strategic plan. Flexibility • Control measures must be able to deal with change. Accuracy • Control measures must take into account the need for information to be accurate. Timeliness • Control measures should provide prompt and regular information. Objectivity • Control measures should provide the MM and HOD’s with information that is as objective as possible. Downloaded from hlayiso.com

Methods of external control: Methods of external control: • Monitoring as an external control method • Performance indicators as an external control method • Potential to instigate as an external control method Downloaded from hlayiso.com

Five elements of internal control: Internal is made up of five elements: (i) Control environment • The control environment in a municipality should be set by the elected officials and appointed managers. In addition, the municipality should have a clear and unambiguous organisational structure with appropriate policies and procedures. (ii) Risk assessment • Is needed so that a municipality can understand which activities may be at risk of fraud and embezzlement. (iii) Control activities • Control activities are the specific actions municipalities can take to prevent or mitigate risks identified in the operations. (iv) Information and communication • Is an important element, it ensures that reporting to the council and citizens is timely and accurate. (v) Monitoring • Is the final element, is what the municipality does to assess the quality of performance. Downloaded from hlayiso.com

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