Entire Document - Chris Hani District Municipality

3.4 MFMA – Requirements
The audit report was signed on 11 March 2010 and submitted to council on 31 March 2010 with a proposed action
plan on the matters pertained in the audit report. The audit report action plan seeks to outline the matters contained
in the audit report and how the municipality will address the said matters. The audit report action plan was approved
by council and submitted to the Auditor General’s office. The Auditor General’s further had meetings with the Mayor
and Accounting Officer on their advice to council in addressing the Audit Report matters. The audit report remedial
actions must and will be an active matter of council business going forward.
CONDITIONAL GRANTS
The municipality has stuck to the conditions of the grants as outlined in the appropriate annual Division of Revenue
Legislation.
The conditional grants consist of the following:
• Municipal Infrastructure Grant (MIG)
• Regional Bulk Infrastructure Grant (RBIG)
• Finance Management Grant FMG)
• Municipal Systems Improvement Grant (MSIG)
•
Municipal Infrastructure Grant
The grant for 2008/9 was R 159 646 000, the programs that were funded in the main are water and sanitation
projects in pursuit of the millennium development goals and national targets on basic service levels. The grant was
spend in full for the 2008/9 municipal financial year. The biggest challenge is that projects for which approval is
awaited at a provincial and national department level. To ensure full spending projects shifts between projects that
already had approval had to take place. Spending takes place over the full district municipal area that covers eight
municipalities. This is done on the basis that the district is the water services authority.
The spending on MIG for the 2006/7 and 2007/8 municipal financial years was kick starting and strengthening of the
trend as described in the 2008/9 financial year. The eradication of back locks is a multi-year task that will consume
resources of every particular year. Spending on water and sanitation will remain a focus of the municipality until all
back locks are eradicated.
Regional Bulk Infrastructure Grant (RBIG)
R 35 000 000 for the expenditure for regional bulk infrastructure for the 2008/9 financial year was a big boost
towards addressing aging water and sanitation infrastructure.
Finance Management Grant (FMG)
The Finance Management grant had an allocation of R 750 000. In the main the allocation was utilised in the for
the payment of the internship program and the implementation of GRAP and MFMA, also for the 2007/8 financial
years with its allocation of R 500 000 and the 2006/7 with its allocation of R 500 000. The grant has become
instrumental for the reforms to be achievable in the municipality. Training on treasury approved program has become
institutionalised and the grant contribute to the training budget of the organisation.
Municipal Systems Improvement Grant (MSIG)
The MSIG was for all three years allocation was spent on financial systems at the district as well as at local municipality
level. Institutional capacity building has to a large extent being the focus of expenditure on MSIG. The total three year
allocation from 2006/7 to 2008/9 is R 2 735 000.
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