Entire Document - Chris Hani District Municipality

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General Information EXECUTIVE MAYOR SPEAKER MUNICIPAL MANAGER CHIEF FINANCIAL OFFICER M.S Sigabi N. Pasha M. Mbambisa P.T. Pambaniso (Acting) MEMBERS OF THE MAYORAL COMMITTEE Executive Mayor Speaker Chief Whip GRADING OF THE LOCAL AUTHORITY Grade 8 R. Shweni Councillors: M. Koyo N. Dzedze L.G. Nkwentsha M. Xuma N. Mvana AUDITORS External – Auditor General Internal – Internal Unit PRIMARY BANKER FNB REGISTERED OFFICE 15 Bells Road Private Bag X7121 Queenstown Queenstown 5319 5320 Facsimile: (045) Telephone: (045) 808-4600 838-1556 E-Mail: webmaster@ chrishanidmi.gov.za Website: http://www. chrishanidm.gov.za APPROVAL OF FINANCIAL STATEMENTS I am responsible for the preparation of these Annual Financial Statements, which are set out on pages 8 to 98, in terms of Section 126(1) of the Municipal Finance Management Act (Act No 56 of 2003) and which I have signed on behalf of the municipality. These Annual Financial Statements will be presented to the Council for information during September 2009. _________________________ _________________________ M MBAMBISA P T PAMBANISO (Acting) MUNICIPAL MANAGER CHIEF FINANCIAL OFFICER 31 August 2009 31 August 2009 88
3.2 Audit Report to the Annual Financial Satements Report of the Audit Committee (AC) issued in terms of the Municipal Finance Management Act NO. 56 of 2003 (MFMA), for the year ended 30 June 2009. Audit Committee Members and Attendance of Meetings The AC consists of the members listed hereunder and meets at least four (4) times per annum as per its terms of reference. During the reporting period six (6) meetings were held. During the year Mr J Emslie resigned and was replaced by Ms Zoleka Madikazi. Name No.of Meetings Attended Mr A Yeboah [ACCA, MSc (UK)] (Chairperson) 6 Mrs T Putzier B.COM (UCT) 6 Mr J Emslie CA (SA) (resigned) 2 Ms Z Madikazi CA (SA) (replaced Mr j Emslie) 0 AC Responsibilities The AC’s role is to assist the <strong>Municipality</strong> in attending to matters affecting both Internal and External Auditing. It strives to achieve this by operating within the AC Charter which was adopted by the Committee. The AC’s continued its highly valued professional relationship with the Office of the Auditor General and the committee wishes to acknowledge the value it attaches to the Auditor General’s recommendations. Internal Control Issues Good corporate governance principles dictate that risks and deficiencies identified and reported should be timeously addressed. In the view thereof Management addressed risk management identification by engaging an external expert in risk management, albeit the workshop being held beyond the financial year. The AC recommends that the manner and attitude of management towards risk management must be taken more seriously since the very process underscores how the external auditor will view the risk appetite of the municipality. The Effectiveness of Internal Control In line with the MFMA and the King II Report on Corporate Governance, the internal Audit function provides Management and the AC with assurance that the internal controls are appropriate and effective. This is achieved by means of risk management process, as well as the identification of corrective actions and suggested enhancements to the controls and processes. The AC confirms that after conducting Internal Audit Assessment, the unit conforms to LEVEL 3 category, (Established), of the Institute of Internal Auditors quality maturity model. (See appendix A). Capacity Issues Noted and Recommendation The AC has noted persistent capacity problems facing the <strong>Municipality</strong> especially in the Finance Directorate. This has affected the preparation of the annual financial statements and service delivery in general. In an attempt to address capacity in this Directorate, the AC recommended immediate appointment of a second DEPUTY DIRECTOR OF FINANCE in charge of financial reporting. Due to the reported challenge, most of the recommendations made by 89
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Table of Contents PART ONE: INTRODU
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PART ONE INTRODUCTION AND OVERVIEW
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providing us with your comments, vi
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SPECIAL PROGRAMMES SUCH AS YOUTH, W
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1.3.4 Values • Respect and Divers
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1.4 OVERVIEW OF THE MUNICIPALITY Mp
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SMME Development The District funde
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Corporate Services Directorate Ayan
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NAME OF SCHEME NUMBER OF MEMBERS AS
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organisation, can be seen to be inf
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2.1.4.5 Power Track Vehicle Managem
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2.2.0.1 Introduction A huge allocat
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In the 2008/2009 financial year Wat
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Integrated Planning and Economic De
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The implementation of housing co-or
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Livestock Improvement (Marketing Fa
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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: 3.1 Introduction 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
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2.1 Reconciliation of Provision for
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4.3 Cash and Cash Equivalents 2009
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Description Land and Buildings Infr
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The movement in Intangible Assets i
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Study Loans In terms of the MFMA no
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Unspent Conditional Grants have bee
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The municipality provides certain p
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The history of experienced adjustme
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2009 2008 R R Present Value of Fund
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Interest Earned on Financial Assets
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The Financial Management Grant is p
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20.11 Provincial: Office of the Pre
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20.17 ProvinciaL: Department ROADS
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Remuneration of the Director: Finan
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25. Impairment Losses 25.1 Impairme
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29.1 Material Losses 2009 2008 R R
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Reserves Deferred Revenue Accumulat
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Operating Lease Liabilities R Accum
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The effect of the Correction of Err
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Incident Budgeted amounts exceeded:
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38.7 Non-Compliance with Chapter 11
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2009 2008 R R Own Resources - - 9 4
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The capital structure of the munici
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Description Note ref in AFS Average
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2009 2008 R R Long-term Receivables
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• The statutory valuation perform
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44. CONTINGENT ASSETS 2009 2008 R R
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Appendices 193
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3.13 Appendices to the AnnuAl FinAn
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Cost / Revaluation Accumulated Depr
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Appendix c - seGmentAl AnAlYsis oF
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Description 2008/2009 Actual 2008/2
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Annexure A Three Year Capital Plan
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Project Number (1) Project Name Fun
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Project Number (1) Project Name Fun
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AUDIT REPORT FINDING: PROPERTY, PLA
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AUDIT REPORT FINDING: IRREGULAR EXP
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Acronyms 215
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