It is important to have some understanding of the accountability framework for municipalities in order to fully understand the role of the Oversight Report as distinct form that of the Annual Report and any other reports required from the municipality.
The following table displays the framework for local government:
||Oversight over||Accountable to|
|Council||Approving policies & Annual budget||Mayor||Community|
|Mayor||Policy, budgets, outcomes, management of / oversight over municipal manager||Municipal Manager||Council|
|Municipal Manager||Implementation & Outputs||Municipal Administration||Mayor|
|Chief Financial Officer and Senior Managers||Implementation & Outputs||Financial Management and Operations||Municipal Manager|
The Oversight Report is the final major step in the annual reporting process of any municipality.
Section129 of the Municipal Finance Management Act requires the council to consider the annual report of its municipality and to adopt an “oversight report” containing the council’s comments on the annual report.
The Oversight Report must include a statement whether the Council:
- has approved the annual report, with or without reservations;
- has rejected the annual report; or
- has referred the annual report back for revision of those components that can be revised.
The Oversight Report is a completely separate product from the Annual Report.
The Oversight Report follows consideration and consultation on the Annual Report and is considered to be a report of the municipal council to the community disclosing the level of success or otherwise, obtained with meeting the priority needs and stated desires of the community as contained in the IDP.
Oversight Report 2014/2015