MUNICIPALITY / 34 Voor Street Phone: 034 331 3041
P.O Box 11 Fax: 034 331 4312
Utrecht E-mail:
2980 Website: www.emadlangeni.gov.za
Oversight Report
For the 2010/11 Financial Year
1. COUNCIL RESOLUTION
The Council having fully considered the annual report of the municipality and representation thereon has resolved in its Special Council meeting held on 20 April 2012:
· that the Annual Report be approved without reservations
2. SUMMARY OF COMMENTS AND CONCLUSIONS ON THE ANNUAL REPORT OF THE MUNICIPALITY
The Annual Report was advertised for 21 days, from 16 February to 08 March 2012 and the Emadlangeni Municipality only received comments from the Department of Cooperative Governance and Traditional Affairs.
2.1 Comments from the Cogta
The Department perused the document in terms of the reporting and disclosure requirements as set out in Chapter 12 of the Municipal Finance Management Act (MFMA), in particular section 121 (3) and (4), 124, 125 and section 46 of the Municipal Systems Act (MSA).
The analysis highlighted that the following items were not included in the annual report:
a) An assessment of the performance against measurable performance objectives for revenue collection by the accounting officer as required by section 121 (3)(f) of the MFMA.
b) Each external service provider as required by section 46 (1) (a) of the MSA.
c) A comparison of the current and prior year performance in the performance report as required by section 46 (1) (b) of the MSA.
d) Measures taken to improve performance as required by section 46 (1) (c) of the MSA.
The analysis also highlighted that the following items are not included in the annual financial statements
a) Details of how the allocations that were received were spent per vote excluding the equitable shares as required by section 123 (1) (c).
b) Statement by the accounting officer that the salaries, allowances and benefits are in accordance with the framework in section 129 of the constitution as required by section 124 (1) (b).
c) Name of the bank where account is held as required by section 125 (2) (e).
d) Criminal or disciplinary steps taken as a result of material losses and material irregular or fruitless expenditure and unauthorised expenditure as required by section 125 (d) (ii).
e) Particulars of non-compliance with the MFMA as required by section 125 (2) (e).
The table below outlines the actions taken to address the issues raised by the Department of Cooperative Governance and Traditional Affairs:
Number / Findings / Corrective Action1 / An assessment of the performance against measurable performance objectives for revenue collection by the accounting officer as required by section 121 (3)(f) of the MFMA. / An assessment by accounting officer has since been included on the Annual Report on page 6 – 7.
2 / Each external service provider as required by section 46 (1) (a) of the MSA. / A section pertaining to external service providers has been included on the Annual Report on page 53 – 57.
3 / A comparison of the current and prior year performance in the performance report as required by section 46 (1) (b) of the MSA. / The task could not be performed due to the absence of relevant information.
4 / Measures taken to improve performance as required by section 46 (1) (c) of the MSA. / This has been included on the Annual Report on page 51 – 53.
FINANCIAL INFORMATION
Number / Findings / Corrective Action
1 / Details of how the allocations that were received were spent per vote excluding the equitable shares as required by section 123 (1) (c). / The information has been included on pages 37 – 38 on the Annual Financial Statements.
2 / Statement by the accounting officer that the salaries, allowances and benefits are in accordance with the framework in section 129 of the constitution as required by section 124 (1) (b). / The information has been included on page 48 on the Annual Financial Statements.
3 / Name of the bank where account is held as required by section 125 (2) (e). / The information has been included on page 1 on the Annual Financial Statements.
4 / Criminal or disciplinary steps taken as a result of material losses and material irregular or fruitless expenditure and unauthorised expenditure as required by section 125 (d) (ii). / No criminal or disciplinary actions were taken on the year under review.
5 / Particulars of non-compliance with the MFMA as required by section 125 (2) (e). / Complied with all relevant sections of the Municipal Finance Management Act.
3. SUMMARY OF THE PROCESS FOLLOWED
The Budget Preparation, Integrated Development Plan (IDP) and Performance Management System (PMS) process plan was prepared in terms of section 21 of the Municipal Finance Management Act, 2003 and Municipal Systems Act, 2000 and approved by Council on 29 August 2005.
According to the Process Plan the Mayor tabled the Annual Report to Council on 24 January 2012. The Annual Report was then submitted to the Auditor-General, Amajuba District Municipality, the Department of Cooperative Governance and Traditional Affairs; Provincial Treasury and advertised in the Newcastle Advertiser as well as local notice boards for public comments and representations. All stakeholders were given a period of 21 days to submit their comments.
The Annual Report was then taken to Council for approval on the 30th of March 2012 where it was rejected as a result of oversight procedures not being followed.
The Municipal Public Accounts Committee then met on the 18th of April 2012 to exercise the oversight function by scrutinising the report after which the committee resolved to that council adopts the 2010/11 Annual Report.
The Emadlangeni Council considered the Annual Report in its Special Council Meeting held on 20 April 2012 and then approved the report.
4. LIST OF ANNEXURE
Annexure A: Minutes of the Special MPAC meeting held on 18 April 2012.
Annexure B: Resolution of the Special Council meeting held on 20 April 2012.
Annexure C: Copy of written representations submitted.
Annexure A:
Minutes of the Special MPAC meeting held on 18 April 2012
Annexure B:
Resolution of the Special Council meeting held on 20 April 2012
Annexure C:
Copy of written representations submitted