Entire Document - Chris Hani District Municipality

CHRIS HANI DISTRICT MUNICIPALITY ANNUAL REPORT 2011 / 2012Item 14AUDITOR GENERAL’sRECOMMENDED ACTIONRESPONSIBLE DEPT /PERSONDirector TechnicalServicesPROPOSED ACTION(S) TO BE TAKEN TARGET DATE PROGRESSREPORTA Service provider will be appointed , that will look at all issues relating to billing in all the LM’s as statedin the Revenue Enhancement Strategy . The implementation of the strategy will be based on the list ofaudit findings per WSP. Once the documentation required by the auditor is available, the auditor will beinvited to audit the transactions.30-05-2012 Work has beendone by PWCand theBy management By Auditor Generalauditor is busyauditingIn progressAUDIT REPORT FINDING: Expenditure Expenditure was overstated as value-added tax (VAT) to the value of R 5.2 million (2010: R 4,9 million )was recognised as expenses in the general ledger of the water services providers when it should havebeen allocated to VAT input , or not recognised at all as some suppliers were not registered for VAT.AUDITOR GENERAL’sRECOMMENDED ACTIONItem (15)RESPONSIBLE DEPT /PERSONDirector TechnicalServicesPROPOSED ACTION(S) TO BE TAKEN TARGET DATE PROGRESSREPORTThe District Municipality will assist the Local Municipalities to ensure that VAT By management By Auditor GeneralCFO is reconcilled on monthly basis. A service provider will be employed to 30-06-2012 The appointmentof a serviceprovider isassist Local Municipalities on VAT review. at evaluationstage, to addree tofindingAUDIT REPORT FINDING: Expenditure Proir year expenditure was misstated by R14,4 milion ,due to misstatements recorded in the report onfinacial statements for the year statements for the year ended 30 June 2010 were not addressed in thecurrent year . In addition, the Municipality could not provide supporting documentation for payments ofR 18,3 million and a provision for doubtfull debt amounting to R 9,5 millionOutstandingItem 16324