2013_14 IDP Review.pdf - KZN Development Planning

4. MUNICIPAL ACTION PLAN TO ADDRESS THE AUDIT QUERIESNo. Query Action plan to address audit findingAUDIT REPORT ISSUESPersonresponsibleTarget dateIrregular expenditure incurred due to themunicipality not follow SCM processes for the1 hire of security services1. BlackWatch Security services contract tobe terminated.2. A tender for the hire of security servicesto be advertised and SCM processes to befollowed OR The municipality to make useof trained bodyguards. CFO,HOD's. 01-Jan-13Restatement of corresponding figures and2 material misstatements due to errors identified.The municipality did not have documented andapproved internal operating procedure manualsto address collection, recording and reporting ofperformance information to enable consistentcollection and reporting on its selecteddevelopment objectives as required by section3 62(1)(b) of the MFMA.The district municipality did not submit aperformance report for uThukela Water as4 required by section 72 of the MFMA.1. Ongoing checks and reviews on financialinformation to be performed in order toeliminate errors and misstatements.2. Caseware financial system is to be usedfor the preparation of financial systems. CFO Ongoing1. A detailed procedure manual for thecollection, recording and reporting ofperformance information is to bedeveloped, approved and implemented. IDP Manager Jan-13A performance report will be compiled forUthukela Water CFO,HOD's. AnnuallyThe mid year budget and performanceassessement was not in the required formatspecified in schedule C of the Local Government5 Budget Regulations and section 72 of the MFMA.Audit committee did not substantially fulfill its6 responsibilitiesMANAGEMENT REPORT ISSUESCapital expenditure recorded with no evidence1 of transfer.(uThukela Water assets)2 Current assets offset against creditors.1. The budget format to be reviewed bymanagement to ensure that the formatcomplies with regulations. CFO,IDP manager 01-Jan-13All the requirements of the MFMA will becomplied with and the effectiveness ofinternal audit is to be assessed. CFO,MM ImmediatelyA schedule of all completed and WIPprojects is to be completed and sent toUthukela Water with supportingdocumentation for capitalisation. CFO MonthlyChecks and reviews will be performed toensure that assets are not offset againstcreditors.CFOMonthly whenfinancialstatements areprepared.Draft 2013/2014 IDP Review Page 289Prepared by Umzinyathi District Municipality22 March 2013