SALGA LIMPOPO FINANCE WEEK 7 - 8 FEB 2013

MOGALAKWENA MUNICIPALITY

UNQUALIFIED AUDIT REPORTS 2009/10, 2010/11 & 2011/12,

BUDGET R729m in 2011/12

INDEX

BACKGROUND

INTRODUCTION

HOW DO WE SUSTAIN UNQUALIFIED OPINIONS

CONCLUSION

BACKGROUND

Mogalakwena Municipality is situated in the Western quadrant of Limpopo province, within the Waterberg District Municipality and bordered by Aganang Local Municipality to the East, Mookgopong Local Municipality to the South, Lephalale to the West and Blouberg local Municipality to the North, with estimated population of 330,644 as in 2007 statistics.

INTRODUCTION

Municipalities are under legislated financial management reforms, and required to comply with the requirements of MFMA, GRAP, SCM Regulations and other best practices.

To this end, a high level of compliance to legislation and policies is required to maintain unqualified audit opinions and achieve clean audit by 2014.

HOW DO WE SUSTAIN UNQUALIFIED?

IT IS ALL ABOUT HAVING THE BASICS RIGHT AND DOING THINGS RIGHT ALL THE TIME:

Strife for compliance with supply chain and financial management prescripts and best practices.

Turn some year-end procedures to monthly processes.

Be GRAP compliant, e.g Asset Register, Annual Financial statement Presentation, etc.

Evidence substantiating figures in the financial statement (working paper file) and submit with Annual Financial Statements

Monthly reconciliations – bank, creditors, debtors, VAT accounts, etc

HOW DO WE SUSTAIN UNQUALIFIED?

Clearing of suspense accounts monthly Running all required procedures at year-end

by: Maintaining year-end procedures checklist,

which forms the basis for compiling audit file. Addressing AG findings through action plan

and avoid a repeat of similar findings.

HOW TO SUSTAIN AND IMPROVE

Consider pre-determined objectives. Treat “operation clean audit by 2014” as

a project. This was done by engaging the services of a consulting firm on skills transfer basis. To this end, we shall be producing monthly financial statements from February 2013 in house using financial statements preparation tool.

CONCLUSION - GRAP, AND TO SOME EXTENT,

LEGISLATION, ARE EVOLVING SUBJECTS AND YOU CAN NEVER SAY YOU HAVE ARRIVED.

- MAINTAIN THE FOCUS AND KEEP ABREAST OF NEW DEVELOPMENTS.

“WE KEEP RUNNING FASTER AND FASTER IN

ORDER TO REMAIN STILL”

THANK YOU