Entire Document - Chris Hani District Municipality

CHRIS HANI DISTRICT MUNICIPALITY ANNUAL REPORT 2011 / 2012auditor is busyauditingAUDIT REPORT FINDING: Trade and other payables Trade creditors and expenditure were understated by R 33,6 million as the municipality did not accountfor expenditure and accruals relating to water and sanitation rendered by suppliers at the water servicesproviders .Item( 10)AUDITOR GENERAL’sRECOMMENDED ACTIONRESPONSIBLE DEPT /PERSONDirector TechnicalServicesPROPOSED ACTION(S) TO BE TAKEN TARGET DATE PROGRESSREPORTThe DM will look at the creditors paid by the LM’s from July 2011 to December 2011 as By management By Auditor Generalsuggested by AG and identify all accruals. Once the AG look at the accruals identified, the openingbalance will be amended.30-03-2012 Done, Awaiting AGto finalise auditIn progressAUDIT REPORT FINDING: Trade and other payables An amount of R118 million credited to creditors was disclosed in note 38 ot the financial statements .The municipality did not have adequate systems to maintain records for processing journals.AUDITOR GENERAL’sRECOMMENDED ACTIONItem (11)RESPONSIBLE DEPT /PERSONDirector TechnicalServicesPROPOSED ACTION(S) TO BE TAKEN TARGET DATE PROGRESSREPORTA service provider will be employed to go back to system at WSP’s and get infomation for the 2009/10financial year as required by the auditor.31-05-2012 Work has beendone by PWCand theBy management By Auditor Generalauditor is busyauditingIn progressAUDIT REPORT FINDING: Services charges There was no adequate system of internal control over revenue for water ,as consumers were billed atincorrect tarriffs or were not billed at all .322