1. Municipal best practices on and challenges and how to respond –financial viability Summary of areas for disclaimer opinion : 1.Revenue: Suspense accounts –outstanding deposits Water transactions and vat not transferred to district municipality Valuation roll not updated regularly on financial system Incorrect tariffs on certain properties Reconciliations Prepaid electricity deferred income acc. estimate not done 2. Procurement: Supporting documentation for contracts and int. declaration Non compliance with SCM for procurement < R200 000

2. 3.Assets and inventory: Opening balances Depreciation not accurate Asset register not fully complaint to NT directive 7 Asset Verification for completeness and existence Reconciliations not done monthly -inventory 4.Payables and receivables: Opening balances

3. 5.Performance Information audit: IDP priorities not link to targets and KPI’s Targets and development objectives SMART SDIP not aligned t budget 6.Other non- Compliance : Section 32- MFMA PMS Framework GRAP standards

4. Best practises to adopt cont: Appropriate risk management processes and monitoring by all staff. Transfer of knowledge for consultants assisting municipalities in asset management or other ensure interdepartmental cooperation in financial matters – SDBIP to be monitored in line with available budgets Records management

5. Best practises to adopt cont: Continuous training of finance staff on all MFMA circulars an GRAP changes Ensuring political statutes of municipality understand the cash flow difficulties as not to implement projects that cant be realistically funded. Ensuring Budget implementation compliance and all MFMA reporting compliance is adhered to

6. Best practises to adopt cont : Alignment of 12 National goals to strategic plans and service delivery agreements Business Continuity and Disaster recovery plans to be updated with risk change factors Awareness of fraud risk factors and improve management controls. Implementation internal and external audit recommendations timeously