2013_14 IDP Review.pdf - KZN Development Planning

efined and revised amongst other things, credit control policy, tariff policy, investmentand cash management policy so as to enhance income or revenue streams. However,we are still monitoring the outcome and impact of such policy changes anddevelopments within council.3. REPORT OF THE AUDITOR-GENERAL TO THE KWAZULU-NATALPROVINCIAL LEGISLATURE AND THE COUNCIL ON THE FINANCIALSTATEMENTS AND PERFORMANCE INFORMATION OF UMZINYATHIDISTRICT MUNICIPALITY FOR THE YEAR ENDED 30 JUNE 2012Introduction1. I have audited the financial statements of the Umzinyathi District Municipality setout on pages xx to xx, which comprise the statement of financial position as at 30June 2012, the statement of financial performance, statement of changes in netassets and the cash flow statement for the year then ended, and the notes,comprising a summary of significant accounting policies and other explanatoryinformation.Accounting Officer’s responsibility for the financial statements2. The accounting officer is responsible for the preparation and fair presentation ofthe financial statements in accordance with the South African Standards ofGenerally Recognised Accounting Practice (SA Standards of GRAP) and therequirements of the Local Government: Municipal Finance Management Act ofSouth Africa, 2003 (Act No. 56 of 2003) (MFMA) and the Division of Revenue Act ofSouth Africa, 2011 (Act No. 6 of 2011) (DoRA), and for such internal control as theaccounting officer determines is necessary to enable the preparation of financialstatements that are free from material misstatement, whether due to fraud or error.Auditor-General’s responsibility3. My responsibility is to express an opinion on the financial statements based on myaudit. I conducted my audit in accordance with the Public Audit Act of SouthAfrica, 2004 (Act No. 25 of 2004) (PAA), the General Notice issued in termsthereof and International Standards on Auditing. Those standards require that Icomply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free frommaterial misstatement.4. An audit involves performing procedures to obtain audit evidence about theamounts and disclosures in the financial statements. The procedures selecteddepend on the auditor’s judgement, including the assessment of the risks ofmaterial misstatement of the financial statements, whether due to fraud or error. Inmaking those risk assessments, the auditor considers internal control relevant tothe municipality’s preparation and fair presentation of the financial statements inorder to design audit procedures that are appropriate in the circumstances, but notfor the purpose of expressing an opinion on the effectiveness of the municipality’sinternal control. An audit also includes evaluating the appropriateness ofDraft 2013/2014 IDP Review Page 285Prepared by Umzinyathi District Municipality22 March 2013