1. PEOPLE-CENTRED SUSTAINABLE LOCAL GOVERNANCE UMnyango wezoHulumeni baseKhaya neziNdaba zoMdabu | Departement van Plaaslike Regering en Tradisionele Sake T here is a town in Northern China that does this every year! It is a great tourist attraction and is always beautiful. Most of them have lights inside and as you can see they are really big. The town is Harbun, and this is a new set of pictures. They get more fantastic all the time. This is the town where the Chinese had that chemical spill a couple of months ago. ? ? ? ? ? ? ? ? ? ? SELECT COMMITTEE OF FINANCE STATUS OF MUNICIPALITIES KWAZULU-NATAL Presented by Mrs HB Krishnan

2. PEOPLE-CENTRED SUSTAINABLE LOCAL GOVERNANCE UMnyango wezoHulumeni baseKhaya neziNdaba zoMdabu | Departement van Plaaslike Regering en Tradisionele Sake T here is a town in Northern China that does this every year! It is a great tourist attraction and is always beautiful. Most of them have lights inside and as you can see they are really big. The town is Harbun, and this is a new set of pictures. They get more fantastic all the time. This is the town where the Chinese had that chemical spill a couple of months ago. ? ? ? ? ? ? ? ? ? ? CONTENT Background Capacity Context Annual Financial Statements –Submissions –Opinions –Main Qualifiers Annual Reports Disclosures and Remuneration Challenges Departmental Support

3. PEOPLE-CENTRED SUSTAINABLE LOCAL GOVERNANCE UMnyango wezoHulumeni baseKhaya neziNdaba zoMdabu | Departement van Plaaslike Regering en Tradisionele Sake T here is a town in Northern China that does this every year! It is a great tourist attraction and is always beautiful. Most of them have lights inside and as you can see they are really big. The town is Harbun, and this is a new set of pictures. They get more fantastic all the time. This is the town where the Chinese had that chemical spill a couple of months ago. ? ? ? ? ? ? ? ? ? ? BACKGROUND MFMA MEC Obligations Phased approach for Annual Reporting –H: 2004/2005 –M: 2005/2006 –L: 2006/2007 KwaZulu-Natal –High: 9 –Medium:16 –Low: 36

4. PEOPLE-CENTRED SUSTAINABLE LOCAL GOVERNANCE UMnyango wezoHulumeni baseKhaya neziNdaba zoMdabu | Departement van Plaaslike Regering en Tradisionele Sake T here is a town in Northern China that does this every year! It is a great tourist attraction and is always beautiful. Most of them have lights inside and as you can see they are really big. The town is Harbun, and this is a new set of pictures. They get more fantastic all the time. This is the town where the Chinese had that chemical spill a couple of months ago. ? ? ? ? ? ? ? ? ? ? CAPACITY Defined in 2003 Based on self assessment by municipalities Anomalies originally identified Need for a review

5. PEOPLE-CENTRED SUSTAINABLE LOCAL GOVERNANCE UMnyango wezoHulumeni baseKhaya neziNdaba zoMdabu | Departement van Plaaslike Regering en Tradisionele Sake T here is a town in Northern China that does this every year! It is a great tourist attraction and is always beautiful. Most of them have lights inside and as you can see they are really big. The town is Harbun, and this is a new set of pictures. They get more fantastic all the time. This is the town where the Chinese had that chemical spill a couple of months ago. ? ? ? ? ? ? ? ? ? ? CONTEXT A new legislative and policy environment is not sufficient to ensure transformation! Underpinned by –Skills; –Systems; –Knowledge; and –A transformation agenda or will. “The cart before the horse?”

6. PEOPLE-CENTRED SUSTAINABLE LOCAL GOVERNANCE UMnyango wezoHulumeni baseKhaya neziNdaba zoMdabu | Departement van Plaaslike Regering en Tradisionele Sake T here is a town in Northern China that does this every year! It is a great tourist attraction and is always beautiful. Most of them have lights inside and as you can see they are really big. The town is Harbun, and this is a new set of pictures. They get more fantastic all the time. This is the town where the Chinese had that chemical spill a couple of months ago. ? ? ? ? ? ? ? ? ? ? ANNUAL FINANCIAL STATEMENTS Submissions –46 within the statutory deadline (75%) –No backlogs in KZN –Outstanding audit opinions Edumbe and Ulundi Municipalities Reasons for late submissions –Processes and role of Mayor –Role of Speaker –Council oversight

7. PEOPLE-CENTRED SUSTAINABLE LOCAL GOVERNANCE UMnyango wezoHulumeni baseKhaya neziNdaba zoMdabu | Departement van Plaaslike Regering en Tradisionele Sake T here is a town in Northern China that does this every year! It is a great tourist attraction and is always beautiful. Most of them have lights inside and as you can see they are really big. The town is Harbun, and this is a new set of pictures. They get more fantastic all the time. This is the town where the Chinese had that chemical spill a couple of months ago. ? ? ? ? ? ? ? ? ? ? ANNUAL FINANCIAL STATEMENTS Opinions –As at 09 May 2007 47 opinions issued by AG –14 Unqualified – 30% –24 Qualified – 51% –9 Disclaimers – 9%

8. PEOPLE-CENTRED SUSTAINABLE LOCAL GOVERNANCE UMnyango wezoHulumeni baseKhaya neziNdaba zoMdabu | Departement van Plaaslike Regering en Tradisionele Sake T here is a town in Northern China that does this every year! It is a great tourist attraction and is always beautiful. Most of them have lights inside and as you can see they are really big. The town is Harbun, and this is a new set of pictures. They get more fantastic all the time. This is the town where the Chinese had that chemical spill a couple of months ago. ? ? ? ? ? ? ? ? ? ? ANNUAL FINANCIAL STATEMENTS Main qualifiers/matters –Outstanding service debtors Inadequate provisions for doubtful debts –Asset Registers Water and Sanitation assets Environmental Health Functions Reconciliations not done Inability to verify assets –Outstanding/inaccurate VAT reconciliations –Internal control –Compliance with legislation

9. PEOPLE-CENTRED SUSTAINABLE LOCAL GOVERNANCE UMnyango wezoHulumeni baseKhaya neziNdaba zoMdabu | Departement van Plaaslike Regering en Tradisionele Sake T here is a town in Northern China that does this every year! It is a great tourist attraction and is always beautiful. Most of them have lights inside and as you can see they are really big. The town is Harbun, and this is a new set of pictures. They get more fantastic all the time. This is the town where the Chinese had that chemical spill a couple of months ago. ? ? ? ? ? ? ? ? ? ? ANNUAL REPORTS Submission of Annual Reports –Disclosure requirements –7 of 9 submitted in respect of 2004/2005 reporting cycle –8% submitted to MEC by 31 March 2007 (2 of 25) Late Submissions –Delays in audit process –Capacity to respond to audit issues and to prepare annual report –Delays in tabling in councils

10. PEOPLE-CENTRED SUSTAINABLE LOCAL GOVERNANCE UMnyango wezoHulumeni baseKhaya neziNdaba zoMdabu | Departement van Plaaslike Regering en Tradisionele Sake T here is a town in Northern China that does this every year! It is a great tourist attraction and is always beautiful. Most of them have lights inside and as you can see they are really big. The town is Harbun, and this is a new set of pictures. They get more fantastic all the time. This is the town where the Chinese had that chemical spill a couple of months ago. ? ? ? ? ? ? ? ? ? ? DISCLOSURES & REMUNERATION Disclosures of Section 56 Manager salaries Compliance with Remuneration of Public Office Bearers Act

11. PEOPLE-CENTRED SUSTAINABLE LOCAL GOVERNANCE UMnyango wezoHulumeni baseKhaya neziNdaba zoMdabu | Departement van Plaaslike Regering en Tradisionele Sake T here is a town in Northern China that does this every year! It is a great tourist attraction and is always beautiful. Most of them have lights inside and as you can see they are really big. The town is Harbun, and this is a new set of pictures. They get more fantastic all the time. This is the town where the Chinese had that chemical spill a couple of months ago. ? ? ? ? ? ? ? ? ? ? CHALLENGES Standards –Onerous –Conversion Standards are underpinned by processes and not events. –Timing Capacity –Technical financial skills –Council Oversight Transfer of functions Lack of uniform performance measures and standards for functionaries and councils

12. PEOPLE-CENTRED SUSTAINABLE LOCAL GOVERNANCE UMnyango wezoHulumeni baseKhaya neziNdaba zoMdabu | Departement van Plaaslike Regering en Tradisionele Sake T here is a town in Northern China that does this every year! It is a great tourist attraction and is always beautiful. Most of them have lights inside and as you can see they are really big. The town is Harbun, and this is a new set of pictures. They get more fantastic all the time. This is the town where the Chinese had that chemical spill a couple of months ago. ? ? ? ? ? ? ? ? ? ? CHALLENGES Debt Management –Data Cleansing of Billing Systems –Implementation of Credit Control by certain councils –Indigent administration and Management –Inability to write of historical debt Accounting records management Lack of Discipline

13. PEOPLE-CENTRED SUSTAINABLE LOCAL GOVERNANCE UMnyango wezoHulumeni baseKhaya neziNdaba zoMdabu | Departement van Plaaslike Regering en Tradisionele Sake T here is a town in Northern China that does this every year! It is a great tourist attraction and is always beautiful. Most of them have lights inside and as you can see they are really big. The town is Harbun, and this is a new set of pictures. They get more fantastic all the time. This is the town where the Chinese had that chemical spill a couple of months ago. ? ? ? ? ? ? ? ? ? ? DEPARTMENTAL SUPPORT Frameworks to promote MFMA compliance –Annual Reporting –Analysing responses to audit reports –Reporting to Parliament Debt Management Pilot Asset Management Pilot Project Shared Services –Internal Control and Risk Management –PMUs etc.

14. PEOPLE-CENTRED SUSTAINABLE LOCAL GOVERNANCE UMnyango wezoHulumeni baseKhaya neziNdaba zoMdabu | Departement van Plaaslike Regering en Tradisionele Sake T here is a town in Northern China that does this every year! It is a great tourist attraction and is always beautiful. Most of them have lights inside and as you can see they are really big. The town is Harbun, and this is a new set of pictures. They get more fantastic all the time. This is the town where the Chinese had that chemical spill a couple of months ago. ? ? ? ? ? ? ? ? ? ? DEPARTMENTAL SUPPORT Hands-on support –Project Consolidate –Siyenza Manje –Need for improved coordination Council training on governance and oversight Support in implementation of the Municipal Property Rates Act

15. PEOPLE-CENTRED SUSTAINABLE LOCAL GOVERNANCE UMnyango wezoHulumeni baseKhaya neziNdaba zoMdabu | Departement van Plaaslike Regering en Tradisionele Sake T here is a town in Northern China that does this every year! It is a great tourist attraction and is always beautiful. Most of them have lights inside and as you can see they are really big. The town is Harbun, and this is a new set of pictures. They get more fantastic all the time. This is the town where the Chinese had that chemical spill a couple of months ago. ? ? ? ? ? ? ? ? ? ? Thank You!