Entire Document - Chris Hani District Municipality

CHRIS HANI DISTRICT MUNICIPALITY ANNUAL REPORT 2011 / 2012auditor is busyauditingAUDIT REPORT FINDING: Irregular expenditure Section 125(2) of the MFMA requires the financial statements of the municipality to disclose materialirregular expenditure that had occurred during the financial year. Irregular expenditure of R33,5 million(2010: R41 million) included in the statement of financial performance was incurred as a result of thecontravention of supply chain management (SCM) requirements. This irregular expenditure was notdisclosed in note 44 to the financial statements. As a result, irregular expenditure was understated bythis amount.AUDITOR GENERAL’sRECOMMENDED ACTIONItem (20)RESPONSIBLE DEPT /PERSONPROPOSED ACTION(S) TO BE TAKEN TARGET DATE PROGRESSREPORTCFO A documented process that will be followed to identify irregular expenditure will be developed to ensurethat all irregular expenditure is identified and is disclosed in the financial statements31-05-2012 Work has beendone by PWCand theBy management By Auditor Generalauditor is busyauditingIn progressAUDIT REPORT FINDING: Reported targetsnot complete whencompared to plannedtargertsThe reported targets were not complete when compared to the planned targets. The actualachievements with regard to 100% of all planned targets specified for the Health and Communityservices programmes in the integrated development plan were not included in the report onpredetermined objectives submitted for auditing. With regard to the engineering programme, 78% of theplanned targets were not complete and could thus not be linked to the integrated development plan.AUDITOR GENERAL’sRECOMMENDED ACTIONItem (28)RESPONSIBLE DEPT /PERSONPROPOSED ACTION(S) TO BE TAKEN TARGET DATE PROGRESSREPORTAll HOD’s Effectively check alignment of SDBIP, IDP and reports submitted by ensuring that only targets plannedare reported on.Quartely By management By Auditor GeneralAll departmentshave revised theirSDBIP’s to ensurealignmentIn progress326