Consolidated Local Government audit outcomes 2009-10 Municipalities and municipal entities Presentation to SCOAG June 2011

MFMA audit outcomes 2009-10 Summary of audit outcomes as at 31 January 2011 Municipalities* Municipal entities 2009-10 2008-09 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 219 256 27 32 Compliance with laws and regulations 224 231 38 47 * Municipalities: based on consolidated financial statements where applicable

MFMA audit outcomes 2009-10 Provincial audit outcomes - Municipalities

MFMA audit outcomes 2009-10 Provincial audit outcomes – Municipal entities

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

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

MFMA audit outcomes 2009-10 Salient aspects of provincial audit outcomes  

MFMA audit outcomes 2009-10 Movements in financial statement qualification findings – Municipalities (110) 58 * Municipalities: based on consolidated financial statements where applicable

MFMA audit outcomes 2009-10 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

MFMA audit outcomes 2009-10 Predetermined objectives reporting findings

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

MFMA audit outcomes 2009-10 Unauthorised, irregular, and fruitless and wasteful expenditure – Municipalities and municipal entities Municipalities: based on consolidated financial statements where applicable

MFMA audit outcomes 2009-10 The impact on audit outcomes of management being given the opportunity to correct material misstatements during the audit

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

MFMA audit outcomes 2009-10 Findings on information systems audits – Municipalities

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

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

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

MFMA audit outcomes 2009-10 Drivers of improved audit outcomes – Financial and performance management Municipalities: based on separate financial statements

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

MFMA audit outcomes 2009-10 Assessment of commitments from key role players to address audit outcomes   Intervention required In progress Good progress Not applicable

Intervention required MFMA audit outcomes 2009-10 Areas of focus needed from national key role players to address audit outcomes at the time of the audit   Intervention required In progress

Supply chain management Predetermined objectives MFMA audit outcomes 2009-10 Recommendations and action plans from SCOAG -1 Supply chain management   Predetermined objectives

MFMA audit outcomes 2009-10 Recommendations and action plans from SCOAG-2 Financial management   Turnaround plans

Human resource management MFMA audit outcomes 2009-10 Recommendations and action plans from SCOAG-3 IT Controls   Human resource management

Municipalities under administration Governance structures MFMA audit outcomes 2009-10 Recommendations and action plans from SCOAG Use of consultants   Municipalities under administration Governance structures

Additional slides relating to 2009/2010 PFMA audit outcomes

PFMA audit outcomes 2009-10 Movement in audit outcomes over 2008-09 financial year – Departments

PFMA audit outcomes 2009-10 Movement in audit outcomes over 2008-09 financial year – Public entities

PFMA audit outcomes 2009-10 Movement in audit outcomes over 2008-09 financial year – Constitutional institutions