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FINANCIAL POSITION OF LOCAL GOVERNMENT

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

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FINANCIAL POSITION OF LOCAL GOVERNMENT

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  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 Statistics @ 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 Statistic @ 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 R16 800 964 • 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 3 307 659 • Free State R 8 884 081 • Gauteng R 243 180 • KwaZulu Natal R 1 727 305 • Mpumalanga Nothing Reported • Northern Cape R 1 666 000 • Limpopo (Northern Prov) R 113 000 • North West R 438 570 • Western Cape R 421 168

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