1. FINANCIAL POSITION OF LOCAL GOVERNMENT
Financial Statements
Auditor’s General Reports
Audit Fees

2. Financial Statements
Annual financial statements of municipalities have to be completed within 3 months of year-end (i.e. 30 September)
Per Auditor-General Report as at 31 March 2001:
there was an improvement in the submission of 1999/2000 financial statements in relation to the submission rate of the 1998/99 financial statements

3. Financial Statements
Per Project Viability 31 December 2001:
Over 70% of financial statements for 2000/01 financial year had been completed, however
only 53% had been approved by Council and
only 51% submitted to the office of the Auditor-General
Statistics based on 93% response rate from municipalities

4. Auditor-General Reports
Per the Auditor-General’s report of 31 March 2001:
During 1 October 2000 to 30 September 2001, 806 audit reports were issued, 485 relating to the 1999/00 financial year, the rest for previous years.
106 (or 22% of the 485) of the audit opinions for the 1999/00 financial year received unqualified audit opinions
This reflects a deterioration from the 1998/99 financial year where 150 (29%) of the 524 opinions given were unqualified

5. Auditor-General Reports
Reasons for qualification of reports were predominantly
Recoverability of Debtors
Applicability of the going concern principle
Per Project Viability 31 December 2001:
26,98 % of reports unqualified
52,38% qualified
20,63% opinion withheld

6. Audit Fees Per the Auditor-General report @ 31 March 2001:
Municipal Audit fees of R20,3 million were in arrears for more than 90 days as at 30 November 2001
This figure was R14,371 million as at 30 November 2000
Alternative methods for recovery of these fees are being pursued: e.g. withhold a portion of the equitable share as outlined in terms of the Division of Revenue Act

7. Audit Fees Per the Project Viability Statistics @ 31 December 2001:
Total amounts outstanding to the Auditor-General, as estimated by the Municipal Managers, equalled R
The majority of amounts outstanding were in the Free State (R8,88 million). Numerous payment plans have been negotiated between municipalities and the office of the Auditor-General to pay off these amounts in instalments

8. Audit Fees
The Estimated Audit fees owing, per Province, as at 31 December 2001 were reported as follows:
Eastern Cape R
Free State R
Gauteng R
KwaZulu Natal R
Mpumalanga Nothing Reported
Northern Cape R
Limpopo (Northern Prov) R
North West R
Western Cape R