Nkomazi Local Municipality 20 - Co-operative Governance and ...

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SECTION G21. FINANCIAL STRATEGY [FINANCIAL PLAN]One of the key objectives identified for the sustainability of Nkomazi Local Municipality is to improve revenuecollection in relation to its financial viability. It is therefore critical that the budget process is carefullyundertaken in appropriate ways internally and externally the plans and strategies detailed in this financial plancontribute to the achievements of this objective. Internal Auditors and the Audit Committee are being used toensure financial procedures and compliance.The Municipal area is so vast but the current revenue base is so small and limited to the few and small urbanareas. For the Municipality to be financially independent there is a need to develop effective income generatingstrategies and debt collection mechanism. To be effective in its financial management, the Municipality hasdeveloped the following policies: The Municipality has developed a number of Financial Plans and Policies asindicated in table 28.Mechanisms to finance infrastructure investmentDue to the rural nature of the Municipality, revenue generation remains a challenge. These forces theMunicipality to rely on the MIG to finance infrastructure investments. However the Municipality has developedservices contributions policy which will aid in investing in infrastructure development programmes andprojects.ExpenditureOut of 161606000 capital budget for 2009/2010 financial year 88, 922, 00 which is 55% was actually spent. Atotal of 91 200 000 of 176 720, 176 which is 60% of the Total capital budget was invested in infrastructureprojects.2010/2011 Budget implementationDue to the over expenditure which was incurred during the 2009/2010 financial year and had to be carried overto the 2010/2011 financial year that has put a strain in the municipal finances which makes it difficult toprecisely implement the IDP and the budget as plannedObservation on operating and capital expenditure analysisThe audit report has established that there was an over expenditure in the operational budget.SDBIPThe Municipality is currently working on the SDBIP the Budget and IDP were approved on the 28 th of March2011 as Drafts which are open to the public for inputs and comments.Linkages between the IDP and BudgetAll the projects which are funded and implemented by the municipality are reflected in both the IDP and thebudget. However other projects from sectors can only reflect in the IDP not in the budget as the sources offunding and implementing agents are outside the scope of the municipality.Audit opinion- 2007/2008- disclaimer- 2008/2009- Qualified- 2009/2010- QualifiedNKLM Integrated Development Plan 2012_2013 134
Audit Report22. Comments on the Auditor General’s opinion for 2010/2011 financial yearWe have moved from a qualified audit opinion in 2009/2010 financial year to an unqualified audit opinionby the Auditor General in the 2010/2011 with matters relating to Supply Chain, Compliance andperformance managementThere has been significant progress in our municipal performance as reflected in our annual report andAuditor’s General report for the 2010/2011 financial year.The Action plan to address the raised issues for 2010/2011 financial year has been developed and is beingimplemented. [see table 44]As required by Section 188 of the Constitution of the Republic of South Africa, 1996 read with Section 4 of thePublic Audit, 2004 (Act No 25 of 2004) (PAA) the Auditor General’s responsibility is to express an opinion onthese financial statements based on his audit, in his opinion the financial statement of the NKLM as set 30 June2009 and its financial performance and cash flows for the year ended have been prepared, in all materialrespects, in accordance with the basis of accounting as set out in accounting policy note 1 and in the mannerrequired by the MFMA and DORA. The Auditor General’s opinion about the financial statement of NKLM was aqualified report.Table 44__ implementation plan to address the auditor general reportFINDINGAll contracts entered into notdisclosed as commitmentsAsset register does not agree tofinancial statementsNo supporting documents tosubstantiate assetsAsset addition recorded in incorrectfinancial periodAsset additions not recorded usingthe correct invoice informationACTION PLANNEDAcquiring new computerized package (contract management system) asadd-on package to existing computer system. The software to be acquiredshouldTrack and trace all projects on an ongoing basis. Prior to the computerizedpackage being obtained a manual contract register will be compiledCommitment list will be updated monthly using all relevant votesAsset register to be updated monthly with disposals and additions. Amonthly reconciliation to be performed between asset register and generalledger.Monthly reconciliations to be authorized. Agree total of Asset Register withAnnual Financial Statements. Proper working papers will be prepared.Asset descriptions and classifications will be enhanced / rectifiedCompiling of asset working paper file containing all additions and disposalsbacked with proper supporting documentationThe filing system is also being upgraded to ensure that documents areeffectively stored and be retrieved with ease. It will be stored in a securedfiling room with only authorized personnel having accessAsset register to be updated monthly with disposals and additionsA monthly reconciliation to be performed between asset register andgeneral ledgerThe correct addition date to be used as per the delivery noteImplement proper cut off procedures at year end for all documentation,asset movement and stock movementAll additions to be captured correctly on the asset register from the relevantsupporting documentationThe expenditure manager will monitor the process of accurate capturingNKLM Integrated Development Plan 2012_2013 135
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ACRONYMSABET : Adult Based Educatio
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SECTION B 4910. STATUS QUO ANALYSIS
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19.22. Integrated Water Resources M
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NKOMAZI EXCECUTIVE MAYOR’S FOREWO
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DEFINITIONS AND KEY TERMSIntegrated
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4. MUNICIPALITY’S CORE VALUESThe
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Figure 1__Spatial Location of Nkoma
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In addition, the Nkomazi Local Muni
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7.2. Overview of nkomaziNkomazi is
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7.2.5.3. High Potential Agricultura
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In ensuring that the Demographic in
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8. MUNICIPAL GOALS, OBJECTIVES AND
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standardsandInfrastructuOperations
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Ensure access toquality, sustainabl
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DEPARTMENT: CORPORATE SERVICESYEAR:
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Increasedappropriateutilizationofte
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Strengthenintegratedplanningandacce
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9.2.2. Mpumalanga Provincial Growth
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9.4. Nkomazi role playersThe partic
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SECTION B10. STATUS QUO ANALYSISThe
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PercentageStrategic Objectives:Inte
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In Place?Sufficient?In Place?Suffic
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Public Works programmes 30%10.1.1.9
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Free basic water policy (includinge
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KPA 1 Table 17: Service delivery an
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10.1.2.2. Free basic sanitationThe
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Axis Title10.1.3. Electrification o
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10.1.4. Roads and Storm WaterStrate
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KPA 1PriorityNotesTable 25: Service
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11. KPA 2: PUBLIC PARTICIPATION AND
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11.4. MANAGEMENT AND OPERATION SYST
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Nkomazi is one Municipality that is
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To provide family support services
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NKLM Integrated Development Plan 20
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13. KPA 4: FINANCIAL VIABILITYStrat
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Nkomazi. In 2007 the total unemploy
Page 83 and 84: Monitor the construction of housesE
Page 85 and 86: TABLE 30: SOCIAL SERVICES [HOUSING]
Page 87 and 88: 15.3. EducationStrategic Objectives
Page 89 and 90: SECTION C17. DEVELOPMENT STRATEGIES
Page 91 and 92: Table 32__Service delivery and infr
Page 93 and 94: Table 33__Sanitation projectsDepart
Page 95 and 96: Table 36__Roads ProjectsDepartment
Page 101 and 102: Table 38__Waste Management Projects
Page 103 and 104: Table 39__Land Use Management Proje
Page 105 and 106: Table 40__Local Economic Developmen
Page 107 and 108: Table 41__Municipal Development and
Page 109 and 110: 18.2. COMPREHENSIVE RURAL DEVELOPME
Page 111 and 112: Output 2 : Improved access to affor
Page 113 and 114: 3.1.13.1.23.1.33.2.13.2.23.2.33.7.1
Page 115 and 116: 3.5.13.5.23.5.3WaterTanksprovisionB
Page 117 and 118: 4.1.2GardnersEmploymentProvide jobo
Page 119 and 120: SECTION E19. SECTOR PLANS19.1. Spat
Page 121 and 122: The following main structuring elem
Page 123 and 124: 19.2. Disaster Management PlanThis
Page 125 and 126: 19.8. Comprehensive Infrastructure
Page 127 and 128: 19.13. Youth PolicyNkomazi Municipa
Page 129 and 130: 19.21. Social Cohesion PlanThe Muni
Page 131 and 132: BUDGET SUMMARYTABLE 43_ ANNUAL OPER
Page 133: Cash backing/surplus reconciliation
Page 137 and 138: Annual performance report notsubmit
Page 139 and 140: PAYE incorrectly calculatedPayment
Page 141 and 142: SECTION H24. ORGANISATIONAL PERFOMA
Page 143 and 144: 1.3 Slow / lack ofimplementationof
Page 145 and 146: 2 Operations and AdministrationOrga
Page 147 and 148: 3.3. Sector Plans not in place: WSD
Page 149 and 150: 4.2. Water infrastructure:BulkInade
Page 151 and 152: 4.8 SanitationReticulationHigh sani
Page 153 and 154: 5.1. Revenue Enhancement- Non-exist
Page 155 and 156: 6.2 Maputo developmentCorridor Flag
Page 157 and 158: Sector Plan Status Approval Date Co
Page 159 and 160: 27. ANNEXURES1. Financial Plan2. Sp
Page 161 and 162: Cllr. Hlahla BA•Ward - 11•Hhoyi
Page 163 and 164: Cllr. Sibiya SC•Ward - 31• Schu
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