Status – Stage 1 Errors Presented by National Treasury 30 January 2018

Stage 1 Errors Financial Data 34 Different type of Stage 1 Errors 46 Municipalities have Stage 1 Errors 97 Municipal Submissions are Outstanding Non - Financial Data 56 Municipalities have Stage 1 Errors 176 Municipal Submissions are Outstanding

Stage 1 – Summary of Submissions (Financial Data) Data submission Submitted /Successfull Submitted / with Errors Outstanding Total M01 233 23 1 257 M02 232 24 M03 221 33 3 M04 210 36 11 M05 156 46 55 M06 120 40 97

Submitted / with Errors Stage 1 – Summary of Submissions (Financial Data) Submitted With Errors - PER VENDOR   Submitted / with Errors Vendor M01 M02 M03 M04 M05 M06 V1 1 2 4 3 V2 V3 V4 V5 V6 20 16 21 17 18 V7 V8 V9 7 V10 V11 5 8 6 V12 Total 23 24 33 36 46 40

Stage 1 – Summary of Submissions (Financial Data) Outstanding Submissions - PER VENDOR   Outstanding Vendor M01 M02 M03 M04 M05 M06 V1 7 15 V2 1 4 V3 8 12 V4 V5 V6 2 V7 3 V8 V9 V10 16 27 V11 11 17 V12 Total 55 97

Stage 1 – Summary of Submissions (Financial Data) Type of Errors Type of Errors (Stage 1) Number of Records Amount with cents. 1212 Invalid ProjectCode. Invalid FunctionCode. Invalid ItemCode. Invalid FundCode. Invalid CostingCode. Invalid RegionCode. 810 Breakdown required for ProjectCode. 251 Invalid FunctionCode. 70 Posting/Breakdown config error for ItemCode. 63 Invalid FunctionCode. Invalid ItemCode. 40 Posting/Breakdown config error for FundCode. 35 Invalid FunctionCode. Invalid ItemCode. Invalid FundCode. 18 ProjectCode is missing. Invalid FunctionCode. Invalid ItemCode. Invalid FundCode. Invalid CostingCode. Invalid RegionCode. 17 Breakdown required for ProjectCode. Posting/Breakdown config error for ItemCode. 15 Invalid FunctionCode. Posting/Breakdown config error for ItemCode. 14 ItemCode is missing. 12 Invalid FundCode. 11 Invalid ProjectCode. Invalid FunctionCode. Invalid ItemCode. Amount with cents. Invalid FunctionCode. 8

Stage 1 – Summary of Submissions (Financial Data) Type of Errors Type of Errors (Stage 1) Number of Records Invalid ProjectCode. Invalid FunctionCode. Invalid ItemCode. Invalid FundCode. 6 Posting not allowed for ProjectCode. Invalid FunctionCode. Invalid ItemCode. 5 Invalid FunctionCode. Invalid FundCode. 4 Invalid FunctionCode. Invalid ItemCode. Posting/Breakdown config error for FundCode. Invalid ItemCode. 3 Posting/Breakdown config error for RegionCode. Invalid RegionCode. 2 Year mismatch between filename and data / data contains Year 2017 Amount with cents. Invalid FunctionCode. Invalid ItemCode. 1 Amount with cents. Invalid ItemCode. Amount with cents. Posting/Breakdown config error for ItemCode. Invalid FunctionCode. Posting/Breakdown config error for ItemCode. Invalid FundCode. Invalid ProjectCode. Invalid FunctionCode. ProjectCode is missing. FunctionCode is missing. FundCode is missing. CostingCode is missing. RegionCode is missing. ProjectCode is missing. FunctionCode is missing. ItemCode is missing. FundCode is missing. CostingCode is missing. RegionCode is missing.

Stage 1 – Summary of Submissions (Non - Financial Data) Data submission Submitted /Successfull Submitted / with Errors Outstanding Total BMQ1 106 50 101 257 IMQ1 95 56 DR06 43 38 176 CR06 80 15 162

Submitted / with Errors Stage 1 – Summary of Submissions (Non - Financial Data) Submitted With Errors - PER VENDOR   Submitted / with Errors Vendor BMQ1 IMQ1 DR06 CR06 V1 10 8 3 V2 4 5 6 V3 14 7 V4 1 V5 V6 V7 V8 2 V9 9 V10 V11 16 12 V12 Total 50 56 38 15

  Status – Stage 2 Errors Presented by National Treasury 30 January 2018

Stage 2 Segment Errors Sum of Charges and Recoveries(CO001 + CO002) 42 Municipalities do not balance Capital projects can only have Item Assets or Payables and Accruals (PC only against IA and IL001006011 is valid) M01 - 11 Municipalities M02 – 26 Municipalities M03 – 32 Municipalities M04 – 37 Municipalities M05 – 32 Municipalities M06 – 29 Municipalities Operation projects not valid against acquisitions or additions (PO not valid against IA002 level acquisitions or additions) 47 Errors from M01 to M06

Stage 2 Segment Errors Oper Proj: Cost of Free Basic Services and Revenue Cost of Free Services and Property Rebates can only have Item Revenue or certain Item Assets 189 Errors from M01 to M06 Default projects may NOT have Item Expenditure and Assets except for current assets and default items 205 Errors from M01 to M06 Remuneration of Councillors not against Mayor and Council 26 Errors from M01 to M06 Bulk purchase electricity not against Electricity 42 Errors from M01 to M06 Inventory consumed : Water not against Water No Errors

Stage 2 Segment Errors Trial Balance 102 Municipalities not Balancing Default Region 60 Municipalities have Errors Other 9 Municipalities have Default Costing and default Expenditure not valid 14 Municipalities have Default Costing and default Revenue not valid

Sum of Charges and Recoveries Presented by National Treasury 30 January 2018

Stage 2 – Segment Errors (Financial Data) Sum of Charges and Recoveries(CO001 + CO002) All Months Actuals – Municipalities – Don’t Balance Province Demarcation Description Demarc Code Sum of Charges and Recoveries(CO001 + CO002) All Months Actuals EC Amathole DC12 -37 397 211 Buffalo City BUF 408 127 Dr Beyers Naude EC101 -15 000 Intsika Yethu EC135 293 901 Nelson Mandela Bay NMA -13 833 800 Ntabankulu EC444 1 509 287 FS Dihlabeng FS192 -6 271 Mangaung MAN -2 812 984 Matjhabeng FS184 2 434 Metsimaholo FS204 12 244 548 GT Ekurhuleni Metro EKU -120 923 303 Emfuleni GT421 2 890 Lesedi GT423 -1 633 422 KZN KwaDukuza KZN292 2 473 967 uMhlathuze KZN282 60 193 LMP Lepelle-Nkumpi LIM355 -1 250 Mogalakwena LIM367 -24 403 Molemole LIM353 210 676 Polokwane LIM354 1 725 366 MP City of Mbombela MP326 1 715 480 Msukaligwa MP302 -144 683 Steve Tshwete MP313 9 021

Stage 2 – Segment Errors (Financial Data) Sum of Charges and Recoveries(CO001 + CO002) All Months Actuals – Municipalities – Don’t Balance Province Demarcation Description Demarc Code Sum of Charges and Recoveries(CO001 + CO002) All Months Actuals NC Frances Baard DC9 15 199 Hantam NC065 233 175 Nama Khoi NC062 553 081 Phokwane NC094 -1 086 565 Richtersveld NC061 28 298 NW Madibeng NW372 -461 258 Maquassi Hills NW404 -296 063 Moses Kotane NW375 45 998 Tswaing NW382 -1 006 WC Bergrivier WC013 -595 047 Breede Valley WC025 300 993 Cape Town CPT 6 585 467 Drakenstein WC023 149 594 George WC044 -100 372 384 Hessequa WC042 1 997 268 Kannaland WC041 476 056 Knysna WC048 -1 656 265 Laingsburg WC051 -1 351 056 Mossel Bay WC043 12 388 629 Swellendam WC034 -219 000

Capital projects can only have Item Assets or Payables and Accruals Presented by National Treasury 30 January 2018

Stage 2 – Segment Errors (Financial Data) Capital projects can only have Item Assets or Payables and Accruals (PC only against IA and IL001006011 is valid) Outstanding M01 Errors Province Demarcation Description Demarc Code CAP FINANCIALYEAR Period Capital projects can only have Item Assets or Payables and Accruals (PC only against IA and IL001006011 is valid) EC Buffalo City BUF H 2018 M01 3 FS Nketoana FS193 M 1 KZN KwaDukuza KZN292 uMuziwabantu KZN214 L Umzinyathi DC24 LMP Bela Bela LIM366 5 Sekhukhune DC47 MP Emakhazeni MP314 Thembisile Hani MP315 NC Joe Morolong NC451 WC Saldanha Bay WC014

Stage 2 – Segment Errors (Financial Data) Capital projects can only have Item Assets or Payables and Accruals (PC only against IA and IL001006011 is valid) Outstanding M02 Errors Province Demarcation Description Demarc Code CAP FINANCIALYEAR Period Capital projects can only have Item Assets or Payables and Accruals (PC only against IA and IL001006011 is valid) EC Amathole DC12 H 2018 M02 4 Elundini EC141 L 5 Mbizana EC443 M Ndlambe EC105 1 Umzimvubu EC442 3 FS Mangaung MAN Nketoana FS193 Thabo Mofutsanyana DC19 Tswelopele FS183 KZN Alfred Duma KZN238 2 iLembe DC29 Inkosi Langalibalele KZN237 Umzinyathi DC24 8 uThungulu DC28 LMP Bela Bela LIM366 Sekhukhune DC47 Thulamela LIM343 Vhembe DC34 MP Dipaleseng MP306 Lekwa MP305 Thembisile Hani MP315 9 NC Emthanjeni NC073 Sol Plaatje NC091 WC Hessequa WC042 Knysna WC048 Saldanha Bay WC014

Stage 2 – Segment Errors (Financial Data) Capital projects can only have Item Assets or Payables and Accruals (PC only against IA and IL001006011 is valid) Outstanding M03 Errors Province Demarcation Description Demarc Code CAP FINANCIALYEAR Period Capital projects can only have Item Assets or Payables and Accruals (PC only against IA and IL001006011 is valid) EC Amathole DC12 H 2018 M03 25 Buffalo City BUF 9 Elundini EC141 L 5 Matatiele EC441 M 1 Mbizana EC443 Ndlambe EC105 Umzimvubu EC442 FS Mangaung MAN 3 Tswelopele FS183 GT Emfuleni GT421 KZN Alfred Duma KZN238 2 iLembe DC29 6 Inkosi Langalibalele KZN237 KwaDukuza KZN292 Umzinyathi DC24 7 LMP Bela Bela LIM366 Makhado-Thulamela LIM345 Sekhukhune DC47 11 Thulamela LIM343 Vhembe DC34 4 MP City of Mbombela MP326 Dipaleseng MP306 Emakhazeni MP314 Lekwa MP305 Thembisile Hani MP315 NC Khai-Ma NC067 Richtersveld NC061 Sol Plaatje NC091 WC Hessequa WC042 Mossel Bay WC043 Saldanha Bay WC014

Stage 2 – Segment Errors (Financial Data) Capital projects can only have Item Assets or Payables and Accruals (PC only against IA and IL001006011 is valid) Outstanding M04 Errors EC Amathole DC12 H 2018 M04 21 Buffalo City BUF 1 Elundini EC141 L 7 Matatiele EC441 M 3 Mbizana EC443 5 Ndlambe EC105 Umzimvubu EC442 2 FS Mangaung MAN 17 GT Ekurhuleni Metro EKU 104 Emfuleni GT421 Midvaal GT422 Mogale City GT481 Rand West City GT485 KZN Alfred Duma KZN238 Greater Kokstad KZN433 iLembe DC29 15 Inkosi Langalibalele KZN237 4 KwaDukuza KZN292 Richmond KZN227 uThungulu DC28 6 LMP Bela Bela LIM366 Makhado-Thulamela LIM345 Mogalakwena LIM367 Polokwane LIM354 Sekhukhune DC47 Vhembe DC34 MP City of Mbombela MP326 12 Dipaleseng MP306 Emakhazeni MP314 Lekwa MP305 Thembisile Hani MP315 11 NC Emthanjeni NC073 Ga-Segonyana NC452 Khai-Ma NC067 Sol Plaatje NC091 WC Saldanha Bay WC014 Swellendam WC034

Stage 2 – Segment Errors (Financial Data) Capital projects can only have Item Assets or Payables and Accruals (PC only against IA and IL001006011 is valid) Outstanding M05 Errors Province Demarcation Description Demarc Code CAP FINANCIALYEAR Period Capital projects can only have Item Assets or Payables and Accruals (PC only against IA and IL001006011 is valid) EC Amathole DC12 H 2018 M05 33 Blue Crane Route EC102 L 1 Buffalo City BUF Elundini EC141 6 Matatiele EC441 M 3 Umzimvubu EC442 FS Mangaung MAN GT Ekurhuleni Metro EKU 79 Midvaal GT422 Mogale City GT481 Rand West City GT485 4 KZN Alfred Duma KZN238 2 Greater Kokstad KZN433 iLembe DC29 11 Inkosi Langalibalele KZN237 KwaDukuza KZN292 Richmond KZN227 Umzinyathi DC24 uThungulu DC28 5 LMP Vhembe DC34 7 MP City of Mbombela MP326 17 Dipaleseng MP306 Lekwa MP305 Steve Tshwete MP313 Thembisile Hani MP315 10 NC Ga-Segonyana NC452 Khai-Ma NC067 Sol Plaatje NC091 WC Cape Town CPT 821 Drakenstein WC023 Hessequa WC042 Saldanha Bay WC014

Stage 2 – Segment Errors (Financial Data) Capital projects can only have Item Assets or Payables and Accruals (PC only against IA and IL001006011 is valid) Outstanding M06 Errors Province Demarcation Description Demarc Code CAP FINANCIALYEAR Period Capital projects can only have Item Assets or Payables and Accruals (PC only against IA and IL001006011 is valid) EC Blue Crane Route EC102 L 2018 M06 1 Chris Hani DC13 M Elundini EC141 9 Ngquza Hills EC153 5 Sarah Baartman DC10 FS Mangaung MAN H 3 GT Ekurhuleni Metro EKU 132 Midvaal GT422 Rand West City GT485 KZN Alfred Duma KZN238 iLembe DC29 14 Inkosi Langalibalele KZN237 2 KwaDukuza KZN292 4 Ray Nkonyeni KZN216 Richmond KZN227 uThungulu DC28 8 LMP Makhado-Thulamela LIM345 MP City of Mbombela MP326 12 Lekwa MP305 Steve Tshwete MP313 Thembisile Hani MP315 6 NC Ga-Segonyana NC452 Sol Plaatje NC091 7 NW Ramotshere Moiloa NW385 WC Cape Town CPT 793 Drakenstein WC023 Hessequa WC042 Saldanha Bay WC014 Stellenbosch WC024

Operation projects not valid against acquisitons or additions Presented by National Treasury 30 January 2018

Stage 2 – Segment Errors (Financial Data) Operation projects not valid against acquisitons or additions (PO not valid against IA002 level acquisitons or additions) Province Demarcation Description Demarc Code CAP FINANCIALYEAR Period Operation projects not valid against acquisitons or additions (PO not valid against IA002 level acquisitons or additions) WC Bergrivier WC013 M 2018 M01 1 NC Joe Morolong NC451 L KZN uMhlathuze KZN282 H uMuziwabantu KZN214 EC Mhlontlo EC156 Knysna WC048 2 Inxuba Yethemba EC131 Port St Johns EC154 Dawid Kruiper NC087 3 MP Victor Khanye MP311 Theewaterskloof WC031 5 M02 Dipaleseng MP306 LMP Musina LIM341 FS Thabo Mofutsanyana DC19 Dikgatlong NC092 M03 Polokwane LIM354 Nelson Mandela Bay NMA Lepelle-Nkumpi LIM355

Stage 2 – Segment Errors (Financial Data) Operation projects not valid against acquisitons or additions (PO not valid against IA002 level acquisitons or additions) Province Demarcation Description Demarc Code CAP FINANCIALYEAR Period Operation projects not valid against acquisitons or additions (PO not valid against IA002 level acquisitons or additions) LMP Lepelle-Nkumpi LIM355 L 2018 M03 2 EC Amathole DC12 H 3 Inxuba Yethemba EC131 Chris Hani DC13 M 4 WC Knysna WC048 9 NC Dawid Kruiper NC087 M04 1 GT Ekurhuleni Metro EKU NW Kagisano-Molopo NW397 Walter Sisulu EC145 5 M05 MP Dipaleseng MP306 Elundini EC141 Port St Johns EC154 Ba-Phalaborwa LIM334 14 M06 City Of Johannesburg JHB

Inventory consumed:Water not against Water Presented by National Treasury 30 January 2018

Stage 2 – Segment Errors (Financial Data) Inventory consumed : Water not against Water (IE007004 not against FX016001002 or FX016002002) No Errors

  Trial Balance Presented by National Treasury 30 January 2018

Stage 2 – Segment Errors (Financial Data) Trial Balance (sum of all items - IE018 and IR004) 102 Municipalities have Trial Balance Issues Bergrivier   Kgetlengrivier Richtersveld Mogalakwena uThungulu Engcobo Breede Valley Lekwa-Teemane Sol Plaatje Molemole Zululand Enoch Mgijima Cape Agulhas Madibeng Z F Mgcawu Polokwane City Of Tshwane Intsika Yethu Cape Town Maquassi Hills Bushbuckridge Alfred Duma Ekurhuleni Metro Inxuba Yethemba Cape Winelands DM Moses Kotane City of Mbombela Dr Nkosazana Dlamini Zuma Emfuleni Nelson Mandela Bay Cederberg Naledi (Nw) Ehlanzeni eDumbe Lesedi Ntabankulu Drakenstein Tlokwe-Ventersdorp Lekwa eMadlangeni Merafong City O .R. Tambo George Tswaing Msukaligwa iLembe Midvaal Hessequa Frances Baard Nkomazi KwaDukuza Mogale City Knysna Ga-Segonyana Pixley Ka Seme (MP) Msinga West Rand Laingsburg Hantam Steve Tshwete Newcastle Dihlabeng Mossel Bay Kamiesberg Thembisile Hani Okhahlamba Mangaung Saldanha Bay Kgatelopele Blouberg Ray Nkonyeni Matjhabeng Swellendam Magareng Capricorn Ubuhlebezwe Metsimaholo Theewaterskloof Nama Khoi Ephraim Mogale uMhlathuze Moqhaka West Coast Namakwa Fetakgomo-Greater Tubatse uMngeni Ngwathe Bojanala Platinum Phokwane Greater Giyani Umvoti Buffalo City City Of Matlosana Pixley Ka Seme (Nc) Lepelle-Nkumpi Umzimkhulu Chris Hani Dr Kenneth Kaunda Renosterberg Modimolle-Mookgopong Uthukela Elundini

Default not valid (RX001 not valid) Presented by National Treasury 30 January 2018

Stage 2 – Segment Errors (Financial Data) Default not valid (RX001 not valid) 60 Municipalities have Default Region Errors Mossel Bay   Ndlambe Lekwa Bergrivier Elundini Amathole Uthukela Witzenberg Nama Khoi iLembe Dr Ruth Segomotsi Mompati Ratlou Knysna Gert Sibande Dipaleseng Dr Beyers Naude KwaDukuza Msinga Umzimkhulu Nketoana Mantsopa Swellendam Richmond Matatiele Bela Bela Umzinyathi Breede Valley Ubuhlebezwe Mbizana Polokwane Thabazimbi Steve Tshwete Tswelopele Kouga uMuziwabantu Pixley Ka Seme (MP) Rand West City Makana Thulamela Alfred Duma Vhembe Dr Nkosazana Dlamini Zuma Ga-Segonyana Modimolle-Mookgopong Lejweleputswa uMngeni Ephraim Mogale Saldanha Bay Naledi (Nw) Makhado-Thulamela !Kheis Ray Nkonyeni Emakhazeni Kgatelopele Cape Winelands DM Z F Mgcawu Thembisile Hani Greater Kokstad Blue Crane Route Umzimvubu

  Other Errors Presented by National Treasury 30 January 2018

Stage 2 – Segment Errors (Financial Data) Other Errors 9 Municipalities have Default Costing and default Expenditure not valid 14 Municipalities have Default Costing and default Revenue not valid

How are we going to fix these repeating Errors?? Presented by National Treasury 30 January 2018

Thank you