2013_14 IDP Review.pdf - KZN Development Planning

Annual financial statements21. The financial statements submitted for auditing were not prepared in all materialrespects in accordance with the requirements of section 122(1) of the MFMA.Material misstatements with regards to the netting off of debtors againstcorresponding creditor balance and disclosure of assets relating to UthukelaWater (Pty) Ltd.Audit committee22. The audit committee did not substantially perform its functions, as required bysection 166 of the MFMA.Internal control23. I considered internal control relevant to my audit of the financial statements,annual performance report and compliance with laws and regulations. The matterreported below under the fundamentals of internal control is limited to thesignificant deficiencies that resulted in the findings on the performance report andcompliance with laws and regulations included in this report.Financial and performance management24. Management did not implement effective controls over the preparation, review andreconciliation of financial records as well as the reporting of performance againstpredetermined objectives. This is evidenced by the material corrections in thefinancial statements and material findings on the usefulness of the annualperformance report.Governance25. The audit committee did not adequately assess the effectiveness of controls andresponses to risks, as evidenced by material corrections in the financialstatements and the deficiencies identified on the usefulness of the annualperformance report.Pietermaritzburg30 November 2012Draft 2013/2014 IDP Review Page 288Prepared by Umzinyathi District Municipality22 March 2013