Entire Document - Chris Hani District Municipality

CHRIS HANI DISTRICT MUNICIPALITY ANNUAL REPORT 2011 / 2012AUDITOR GENERAL’sRECOMMENDED ACTIONRESPONSIBLE DEPT /PERSONDirector TechnicalServicesPROPOSED ACTION(S) TO BE TAKEN TARGET DATE PROGRESSREPORTBy management By Auditor GeneralThere WSA will seek advises from other Municipalities as to how best can we deal with water inventory. 30-05-2012 Done OutstandingThe water coversation and demand management is being implemented to address the issue of bulkmeters and loggers.In ProgressAUDIT REPORT FINDING: Inventory The was no comparative figure for the inventory balance ,as the prior year figures of R6,8 million hadbeen written off .AUDITOR GENERAL’sRECOMMENDED ACTIONItem(6)RESPONSIBLE DEPT /PERSONPROPOSED ACTION(S) TO BE TAKEN TARGET DATE PROGRESSREPORTCFO By management By Auditor GeneralThe amount will automatically fall away in the 2011/12 financial year, and the item will be disclosed as Discontinue Operation in the 2012 AFS . We are awaiting advice from the AG to ensure that the councilresolution will address the 2010/11 stock figure to avoid it being dislosed as proir year audit finding31-01-2012 Done Outstanding30-05-2012Item will besubmitted tocouncilto condone, as thestock countcannot be reperformedAUDIT REPORT FINDING: Trade receivables fromexchangeAn impairment loss on receivables in receivables from exchange transactions was not recognisedin accordance with the South African Statements of Generally Accepted Accounting Practice ,themunicipality impaired the full amount for consumer debtors and this did not represent the value ofestimated future flows as required by IAS 39.320