Brief look at AG’s report for Umvoti

2017-02-08 06:03

Umvoti Municipality has received an unqualified opinion for the past financial year but with matters of emphasis highlighted by the AG as follows.

The municipality struggled to:

• Produce financial statements without material misstatements.

• Align performance reports to predetermined objectives.

• Set clear performance indicators and targets to measure performance.

• Report reliably on the achievement of targets.

• Comply with legalisation and implement the required policies, procedures and controls.

Matters raised in the AG’s presentation at last week’s council meeting:

• R5.27 million of small town rehabilitation grant was not spent.

• R5.1 million material electricity losses were incurred.

• Particulars of non-compliance
with MFMA (Section 125(2)(c) is not disclosed.

• Expenditure management, reasonable steps were not taken to present irregular expenditure.

• Irregular expenditure incurred
was not investigated to determine
if any person was liable for the expenditure.
No irregular expenditure was recovered.

• No measures taken to improve performance.

• Performance management sys-
tem and related controls were inadequate.

• Senior managers did not sign performance agreements required by Section 57 of the Systems Act.

• Contracts were awarded to bidders that did not score the highest points in the evaluation process.

• Awards were made to providers who were in the service of the state.

• Extensions of modifications to
contracts were made without approval.

• Goods and services of a transaction value above R200 000 were procured without inviting competitive bids (tenders).

• No adequate oversight to ensure financial statements were accurate.

• No adequate controls to ensure compliance with SCM regulations, MFMA and other key legislations.

A more detailed report based on the original AG report will be published in the Greytown Gazette in the interest of the public.

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