1. Consolidated Local Government audit outcomes 2009-10
Municipalities and municipal entities
13 April 2011

2. MFMA audit outcomes 2009-10 Summary of audit outcomes as at 31 January 2011
Municipalities*
Municipal entities
Disclaimer 53
103 5 8
Adverse 7 10
Qualified 50 4
Financially unqualified with findings on predetermined objectives and/or compliance with laws and regulations
120
113 29 42
Financially unqualified with no findings on predetermined objectives or compliance with laws and regulations 1
Total number of audits reported on
237
280 49 55
Number of audit reports not issued by 31 January 2011 46 3
Total number of audits
283 54 56
Findings arising from the AGSA’s other legal reporting responsibilities:
Predetermined objectives
219
257 27 30
Compliance with laws and regulations
224
231 38
* Municipalities: based on consolidated financial statements where applicable

3. MFMA audit outcomes 2009-10 Movement in audit outcomes over 2008-09 financial year – Municipalities
* Findings on predetermined objectives and compliance with laws and regulations

4. MFMA audit outcomes Movement in audit outcomes over financial year – Municipal entities

5. MFMA audit outcomes Provincial analysis of audit outcomes – Municipalities and municipal entities as at 31 January 2011

6. MFMA audit outcomes Movements in financial statement qualification findings – Municipalities (110) 58
* Municipalities: based on consolidated financial statements where applicable

7. MFMA audit outcomes Findings arising from the AGSA’s other legal reporting responsibilities – Municipalities*
* Municipalities: based on consolidated financial statements where applicable
** Findings on predetermined objectives and/or compliance with laws and regulations

8. MFMA audit outcomes 2009-10 Predetermined objectives reporting findings – Municipalities (219)
Late/non-submission: : 25% : 37%
Non-compliance: : 88% : 88%
Compliance with the MFMA, MSA and Municipal Planning and Performance Management Regulations pertaining to the planning, management, monitoring, review and reporting of performance
Inadequate presentation of reported information, reported information not submitted in time for audit purposes and non-existence and/ non-functioning of a performance audit committee.
Not useful: : 68% : 58%
Consistency, relevance and measurability of planned and reported performance information. Information is not being consistent with targets and indicators as set in the strategic/ corporate/ annual performance plans and targets which are not specific, measurable and time bound.
Not reliable: : 47% : 55%
Reported information not accurate, complete and consistent in relation to the source data, evidence or documentation. Lack of sufficient appropriate audit evidence in relation to reported performance information and source information not adequately supporting the accuracy and completeness of the reported facts.

9. MFMA audit outcomes 2009-10 Top findings on compliance with laws and regulations – Municipalities*
* Municipalities: based on separate financial statements

10. MFMA audit outcomes Unauthorised, irregular, and fruitless and wasteful expenditure – Municipalities and municipal entities
Municipalities: based on consolidated financial statements where applicable

11. MFMA audit outcomes The impact on audit outcomes of management being given the opportunity to correct material misstatements during the audit

12. MFMA audit outcomes 2009-10 Assistance provided by consultants (Financial statement-related)

13. MFMA audit outcomes 2009-10 Findings on information systems audits – Municipalities
Percentages (%) are out of number of auditees where IT focus areas was tested

14. MFMA audit outcomes 2009-10 Municipalities and municipal entities with funding concerns

15. MFMA audit outcomes 2009-10 Analysis of drivers of improved audit outcomes at the time of the audit
Municipalities: based on separate financial statements

16. MFMA audit outcomes 2009-10 Drivers of improved audit outcomes – Leadership
Municipalities: based on separate financial statements

17. MFMA audit outcomes Drivers of improved audit outcomes – Financial and performance management
Municipalities: based on separate financial statements

18. MFMA audit outcomes 2009-10 Drivers of improved audit outcomes – Governance
Municipalities: based on separate financial statements

19. MFMA audit outcomes Assessment of commitments from key role players to address audit outcomes
Role players
Assessment of monitoring capacity and effectiveness since the audit
Supply chain management
Predetermined objectives
Financial management
Turnaround plans
IT Controls
Human resource management
Use of consultants
Municipalities under administration (Section 139 of MFMA)
Governance structures
Provincial executive leadership (Provincial CoGTA and Provincial Treasury, Operation Clean Audit, Premier, MEC Local Government and MEC Finance) EC FS GP
KZN LP MP NC NW WC
Coordinated Provincial oversight (Provincial standing committees, Provincial Speakers Forum, and MPACs)
Intervention required
In progress
Good progress
Not applicable

20. MFMA audit outcomes Areas of focus needed from national key role players to address audit outcomes at the time of the audit
Role players
Assessment of monitoring capacity and effectiveness
Supply chain management
Predetermined objectives
Financial management
Turnaround plans
IT Controls
Human resource management
Use of consultants
Municipalities under administration
Governance structures
Executive leadership
(COGTA, National Treasury, DPSA, Presidency)
Legislative oversight
(NCOP, NA Portfolio Committees)
SALGA
Intervention is required
In progress

21. Supply chain management Predetermined objectives
MFMA audit outcomes Recommendations and action plans from NA-NCOP -1
Supply chain management
Predetermined objectives

22. MFMA audit outcomes 2009-10 Recommendations and action plans from NA-NCOP-2
Financial management
Turnaround plans

23. Human resource management
MFMA audit outcomes Recommendations and action plans from NA-NCOP-3
IT Controls
Human resource management

24. Municipalities under administration Governance structures
MFMA audit outcomes Recommendations and action plans from NA-NCOP
Use of consultants
Municipalities under administration
Governance structures

25. MFMA audit outcomes 2009-10 Recommendations and action plans from NA-NCOP
Supply chain management
Predetermined objectives
Financial management
Turnaround plans
IT Controls
Human resource management
Use of consultants
Municipalities under administration
Governance structures