Entire Document - Chris Hani District Municipality

More documents

Recommendations

Info

Annexure b AUDIT REPORT FINDING: OTHER DEBTORS (ITEM 4 & 5) The corresponding figure for other debtors did not reconcile to the prior year audited financial statements as it increased by R7.3 million. This increase is not supported by sufficient and appropriate documentation and as a result it was not possible to confirm that this amount was due to the municipality and recorded at the correct amount. The municipality could not provide evidnce that the other debtors of R24.3 million disclosed in note 2 will be collected. As a result provision for the impairment of long term debtors disclosed in note 34 is understated by R18.6 million, other debtors disclosed in the statement of financial position is overstated by R18.6 million and impairment losses disclosed in the statement of performance is understated by the same amount. AUDITOR GENERAL’S RECOMMENDED ACTION RESPONSIBLE DEPT / PERSON PROPOSED ACTION(S) TO BE TAKEN TARGET DATE PROGRESS REPORT Budget & Treasury Office • Chief Financial Officer • Deputy Chief Financial Officer • Deputy Chief Financial Officer Provide evidence and demonstrate to the AG how the prior year’s audit balances were restated. Provide evidence of subsequent receipts of R 15.461m and R 8.3m for Inxuba yethemba local municipality and Department of Transport respectively. 30-Mar-10 30-Mar-10 By management Outstanding Done By Auditor General Outstanding Outstanding • Deputy Chief Financial Officer Consider writing off long overdue debtors in terms of the bad debt policy 30-Mar-10 Outstanding Not applicable • Manager - Accounting services Hand over all other collectable overdue debt to Council attorneys 30-Mar-10 Outstanding Not applicable AUDIT REPORT FINDING: TRADE AND OTHER RECEIVABLES (ITEM 6) Chris Hani District Municipality as the Water Services Authority (WSA) appointed the local municipalities in the district as Water Services Providers (WSP). As per the service level agreements the local municipalities must collect the Water Services revenue and maintain the assets on behlaf of the District municipality. All water revenue, expenses, assets and liabilities should be recorded in the books of the District municipality. The municipality did not account for any of the water transactions and balances. Due to poor record keeping by the relevant local municipalities, it was not possible, even after performing alternative procedures, to determine the amount by whcih trade receivables, revenues, expenditure, other assets and creditors are understated. AUDITOR GENERAL’S RECOMMENDED ACTION RESPONSIBLE DEPT / PERSON PROPOSED ACTION(S) TO BE TAKEN TARGET DATE PROGRESS REPORT Budget & Treasury Office • Chief Financial Officer Technical Service • Director Technical services Prepare a Water and Sanitation distribution plan,submit for Council approval and begin to implement. 30-Mar-10 By management Outstanding By Auditor General Outstanding 210
AUDIT REPORT FINDING: PROPERTY, PLANT AND EQUIPMENT (PPE) (ITEM 7) Completed infrastructure assets and those under construction were expensed instead of being capitalised as required by GRAP 17. In addition, the Fixed Asset Register used to support the amounts in the financial statements did not provide sufficent evidence to identify and trace assets from the floor to the register and vice versa. As a result Property, Plant and Equipment including capital work-in-progress is understated by R143.2 million, expenditure is overstated by R77 million and accumulated surplus is understated by R65 million. AUDITOR GENERAL’S RECOMMENDED ACTION RESPONSIBLE DEPT / PERSON PROPOSED ACTION(S) TO BE TAKEN TARGET DATE PROGRESS REPORT Technical Service • Director Technical services Isolate and remove donated assets to comunities and Local municipalities not in the control of CHDM from the reported figures above. 30-Apr-10 By management Outstanding By Auditor General Outstanding Budget & Treasury Office • Chief Financial Officer Account for all Water and Sanitation services assets created in the 2009 financial year. 30-May-10 Outstanding Outstanding AUDIT REPORT FINDING: PROVISIONS (ITEM 8 & 9) In the audit report for the year ended 30 June 2008, I reported that the leave provision could not be verified. Management have not effected any adjustments to the balance as previously disclosed or provided evidence that the leave balances which formed the basis of the leave provision as previously disclosed were correct, and as a result, the corresponding figure for the leave provision of R4 million is still could not be verified. Errors in the number of days leave due to employees at the beginning of the year were not corrected. As a result the closing leave balances which form the basis of the leave provision are not accurate or recorded at the correct amount. The lack of appropriate records prevented the quantification of this misstatement. AUDITOR GENERAL’S RECOMMENDED ACTION RESPONSIBLE DEPT / PERSON PROPOSED ACTION(S) TO BE TAKEN TARGET DATE PROGRESS REPORT Corporate Services • Director Corporate services Perform leave records reconcilliation on opening balance leave credits per employee in response to the Audit query and report to Council for approval and condonation where neccessary. 31-Mar-10 By management Outstanding By Auditor General Outstanding AUDIT REPORT FINDING: CREDITORS (ITEM 10 & 11) The corresponding figure for creditors did not reconcile to the prior year audited financial statements as it increased by R9.3 million. This increase is not supported by sufficient and appropriate documentation and as a result it was not possible to confirm that this amount was owed by the municipality and recorded at the correct amount. Management did not accrue for all retentions due to suppliers on its completed projects as a result the retentions payable on completed projects as disclosed in the statement of financial position and note 10 is understated by R8.7 million while expenditure is understated by the same amount. AUDITOR GENERAL’S RECOMMENDED ACTION RESPONSIBLE DEPT / PERSON PROPOSED ACTION(S) TO BE TAKEN TARGET DATE PROGRESS REPORT Budget & Treasury Office • Chief Financial Officer • Deputy Chief Financial Officer Provide evidence and demonstrate to the AG how the prior year’s audit balances were restated. 30-Mar-10 By management Outstanding By Auditor General Outstanding • Technical Service • Director Technical services Provide evidence in the form of calculations and demonstrate to the AG how the retentions amount disclosed in the Annual Financial Statements was determined. 30-Mar-10 Done Outstanding 211
Page 3 and 4:
Table of Contents PART ONE: INTRODU
Page 5:
PART ONE INTRODUCTION AND OVERVIEW
Page 8 and 9:
providing us with your comments, vi
Page 10 and 11:
SPECIAL PROGRAMMES SUCH AS YOUTH, W
Page 12 and 13:
1.3.4 Values • Respect and Divers
Page 14 and 15:
1.4 OVERVIEW OF THE MUNICIPALITY Mp
Page 16 and 17:
SMME Development The District funde
Page 18 and 19:
Corporate Services Directorate Ayan
Page 20 and 21:
NAME OF SCHEME NUMBER OF MEMBERS AS
Page 22 and 23:
organisation, can be seen to be inf
Page 24 and 25:
2.1.4.5 Power Track Vehicle Managem
Page 26 and 27:
2.2.0.1 Introduction A huge allocat
Page 28 and 29:
In the 2008/2009 financial year Wat
Page 30 and 31:
Integrated Planning and Economic De
Page 32 and 33:
The implementation of housing co-or
Page 34 and 35:
Livestock Improvement (Marketing Fa
Page 36 and 37:
Chris Hani Month events Measurable
Page 38 and 39:
Percentage Complete 99,9% Budget Sp
Page 40 and 41:
Regional/LED Strategy Measurable Ou
Page 42 and 43:
Health and Community Services Direc
Page 44 and 45:
Due to the success of this project
Page 46 and 47:
In observing HIV/AIDS days the CHDM
Page 48 and 49:
Budget 2008/09 Key Deliverables •
Page 50 and 51:
Challenges& Proposed Solutions Meas
Page 52 and 53:
Budget Spent R125 000 Stakeholder/
Page 54 and 55:
2.4.4 Disaster Management UNIT This
Page 56 and 57:
critical areas. 2.4.4.5 INCIDENTS O
Page 58 and 59:
2.4.5 Fire and Emergency Services U
Page 60 and 61:
Stakeholders/partners Challenges Me
Page 62 and 63:
2.5.0.1 Introduction For the financ
Page 64 and 65:
Key Deliverables • Asset identifi
Page 66 and 67:
• The possible rescheduling/timin
Page 68 and 69:
Project leader T. Somtombo/ M. Mash
Page 70 and 71:
Measurable outcome Activities/Proje
Page 72 and 73:
72 Good Governance
Page 74 and 75:
Communication strategy The District
Page 76 and 77:
Stakeholders/partners Challenges Me
Page 78 and 79:
2.6.2 INTERNAL AUDIT Services UNIT
Page 80 and 81:
Challenges Measurable outcome Execu
Page 82 and 83:
The SPU coordinating committee and
Page 84 and 85:
We would like to highlight and comm
Page 87 and 88:
3.1 Introduction to the Annual Fina
Page 89 and 90:
3.2 Audit Report to the Annual Fina
Page 91 and 92:
APPENDIX A QUALITY MATURITY MODEL O
Page 93 and 94:
3.4 MFMA - Requirements The audit r
Page 95 and 96:
IRONPORT LICENSES STATUS BEFORE 200
Page 97 and 98:
provide sufficient evidence to iden
Page 99 and 100:
25. The mayor did not submit to cou
Page 101 and 102:
No. Matter Y N •The audit committ
Page 103 and 104:
Usefulness and reliability of repor
Page 105 and 106:
The overall operating results for t
Page 107 and 108:
5. ACCUMULATED SURPLUS The balance
Page 109 and 110:
13. LONG-TERM RECEIVABLES Long-term
Page 111 and 112:
3.8 STATEMENT OF FINANCIAL PERFORMA
Page 113 and 114:
3.10 CASH FLOW STATEMENT FOR THE YE
Page 115 and 116:
1.1 Changes in Accounting Policy an
Page 117 and 118:
Management has considered all the o
Page 119 and 120:
2.7 Heritage Assets Heritage assets
Page 121 and 122:
The municipality did not perform im
Page 123 and 124:
Based on management’s judgement,
Page 125 and 126:
Cash includes cash-on-hand (includi
Page 127 and 128:
5.5 Derecognition of Financial Asse
Page 129 and 130:
7.3 Transitional Provisions The rec
Page 131 and 132:
9.2.8 Sale of Goods Revenue from th
Page 133 and 134:
of performance bonuses only when th
Page 135 and 136:
amount of the Municipality’s net
Page 137 and 138:
Changes in Accounting Estimates are
Page 139 and 140:
2.1 Reconciliation of Provision for
Page 141 and 142:
4.3 Cash and Cash Equivalents 2009
Page 143 and 144:
Description Land and Buildings Infr
Page 145 and 146:
The movement in Intangible Assets i
Page 147 and 148:
Study Loans In terms of the MFMA no
Page 149 and 150:
Unspent Conditional Grants have bee
Page 151 and 152:
The municipality provides certain p
Page 153 and 154:
The history of experienced adjustme
Page 155 and 156:
2009 2008 R R Present Value of Fund
Page 157 and 158:
Interest Earned on Financial Assets
Page 159 and 160: The Financial Management Grant is p
Page 161 and 162: 20.11 Provincial: Office of the Pre
Page 163 and 164: 20.17 ProvinciaL: Department ROADS
Page 165 and 166: Remuneration of the Director: Finan
Page 167 and 168: 25. Impairment Losses 25.1 Impairme
Page 169 and 170: 29.1 Material Losses 2009 2008 R R
Page 171 and 172: Reserves Deferred Revenue Accumulat
Page 173 and 174: Operating Lease Liabilities R Accum
Page 175 and 176: The effect of the Correction of Err
Page 177 and 178: Incident Budgeted amounts exceeded:
Page 179 and 180: 38.7 Non-Compliance with Chapter 11
Page 181 and 182: 2009 2008 R R Own Resources - - 9 4
Page 183 and 184: The capital structure of the munici
Page 185 and 186: Description Note ref in AFS Average
Page 187 and 188: 2009 2008 R R Long-term Receivables
Page 189 and 190: • The statutory valuation perform
Page 191 and 192: 44. CONTINGENT ASSETS 2009 2008 R R
Page 193 and 194: Appendices 193
Page 195 and 196: 3.13 Appendices to the AnnuAl FinAn
Page 197 and 198: Cost / Revaluation Accumulated Depr
Page 199 and 200: Appendix c - seGmentAl AnAlYsis oF
Page 201 and 202: Description 2008/2009 Actual 2008/2
Page 203 and 204: 203
Page 205 and 206: Annexure A Three Year Capital Plan
Page 207 and 208: Project Number (1) Project Name Fun
Page 209: Project Number (1) Project Name Fun
Page 213 and 214: AUDIT REPORT FINDING: IRREGULAR EXP
Page 215 and 216: Acronyms 215
Page 217 and 218: 217
show all

Entire Document - Chris Hani District Municipality

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?