Table Of Content

Report of the auditor-general to the Gauteng Provincial Legislature and the council of West Rand District Municipality Report on the consolidated and separate financlal statements Introduction 1. Ihave audited the consolidated and seporeie financial slaloments of tho West Rand District municinalty and its muricipat anil sa: out on pages x to x, which comprise the ‘canso ated and separate statement cf finacial position aa et 20 June 201, the conso-dated and separate statement cf finaicial performance, slabareail ef changes i nel assela, aash fle statement ane the statcrert of comparisen of budget information vith actual nfermation for the year then ended, as well as the notes. comprising a summary ct signticart accaunting policies ane! olher explarataty information Accounting officer's responsibility for the consolidated and separate financial statements 2, The accounting officer is responsible tor the preparaion and fai prssentation af thoes consalidated an saaarale nancial stalamenis n acverda ce with South African Slancards ef Generally Racognised Accounting Practice (SA standards of GRAP) and {he requireme ats 0° the Municipal Firanoe Managarnent Art, 2009 (Aci No. 6 of 2093} (SFIAA) and the Division of Reverus Acl of South Attica, 2016 (Act No. 6 of 2615) (DORA), 2314 Tor such internal control as the accounting officer datenmines is necessary to ensble the preperstio of consolidated and seaarate financial statements that are free [ram material misstatement, wrelhar dua Io fraud or error. Auditor-general's responsibility 3, My responsibiily is 0 express au opinion an Ihese consolidated and separate financial statements based on my audi. l conducted my audit in accordance with He Intematicral Standards on Audit ng, Thase standards require Ihat I coraaty wth ethical requiremeris, and plan and parfarr the audit to obtain reasonable assurance about wether the consolidated and separate ‘nancial statements are free from material misstatement. 4. An aut ‘ruolves performing procedures Ip obtoin audit evigonce about the amounts ‘and disclosures. n the consclidaled and separate financial statements, The provedures ‘selacad depend on the sucita’s judgement, including the assossent ofthe risks of ‘malerial migslalomen| of ile vansulidaled and swpa‘ate {nancial stalements. whether slug ta fraud or ear. In making those “isk assessments. the auditor considers internal contra relevant tc the municipality's preparstion end faie presantation af the consolidated and separsie financial slalemants in order to design aveit procedures that fre appropriate in me circumstances, butnet forthe purpose of expressing an opinion onthe effectiveness of the municipaliys intemal contral. An suait also Includes evalualing the appropriateness of aecountirg pallies used end the reasonableness o* accounting estimates made by managemant, as well as evaluating the overall presentation ofthe consolicated end separste fnencial statements, 5. believe hat the auait evidence | have obtined is suffician! and appropriate lo provide: a hasis for my quell opinion. Opinion 8, tnmy opinign, the consoldated and seoaratefnancil staxernents present fay, nal imate specs, fe fnancal postion of the West Ran Dis Wuriipally ad i tmunisipal eniy ag 0 une 2016 an lis nancial aertcmmance and cash flows for the yaar then andad, in accordance with SA standard of GRAP ane the requremens of Ie MEMA and DaRA. Emphasis of matters 7. draw attention to the natters below. My opinion is not medi lad in respect of those matters. Matericl losses 8, As disclosed in nota 45 to tha consolidared financial statements. the mun cipalty incu7od material losses on baak ané each amounting to RB 218 228 as a ravi oe difference betwesn the cash hook und the Lark sfalamort Significant unce-tainties 9. As disclosed to note 26 te tha consolidated finar}cial statoments, the municipality is the dalendian in a nuurber of egal cases. Tre ultimate cutes'ne af these matters cannot currently be deternined. Consequently nc provision for any abil thal may regu hae bb2en rade inthe nar cial slalannenis Material ‘mpairments 10. As disclosed in note 4 to the vunnulidaled Iranciel statements, the trade recenvases ‘ralancs has baan signif cartly impaired. The al ovance for impairment of consumer debtors amounted to R 3 889 143 (2016: RS 193 O68), which repraga ted 12% (2015: 54 th) of total trade debios. The contribution tothe provision for debt impairmen: was Ry@0 085 (2016: R1 369 840), Report on other legal and regulatory requirements 11. In scetdance with tha Public Audit Act of. 2004 (Act No. 25 0° 2304) (PAA) and the ‘gonoral ralice issued in terme thereof, [hava a responsibly te reper findings on the Feportec parform ance inforimalion aga'nst prodotermined objecives for selected ‘davaloprient priulies presented inthe annual perlormance repert, corapla729 with legislation and internal control. The objective of my tosts was to identiy rapartaa.e findings as described under wach sublieading, bul no: ta gather eviaence lo express. assuranos on “nese matters. Accordingly, do not express an opinion or conclu oF on these matters, Predetermined objectives 12. | performed procedures to obta n evidence abcut the usefulness. and ratisiliy of the rapcried parlormance iifomalia for Ihe flowing sulaclod devoiapmont priiles presented iv the annual performance repart of the West Rand District Municinaly for the year ended 30 June 2016; ‘+ Development airy * egiaral planning we actne ie dave-eprnant on pages » Lox + Developrioul a irily2, neal arid soul deve opment en pages 2 10x ‘+ Developnent airy & aublie safety paes xto x 18, | evaluated the reported performance information agains the overall erlora of usefuless and ralabilty 14, evaluated the usefulness ofthe reported perforence information t determine ‘whether itwas presented In accordance with the National Tveasurys anrual raping brine plas and whether the rapertad performance was consistent with the planned development proities. [further performed teste to de:ermine whe:her indicazors ard targats ware wel dalined, vaiia's. specie, measurabls, lime bound and raluenl, a8 oguired by the National Treasury's Bramowork for Managieg Programa Portermance Information (FRPP), 16, Lassessed the reliably of the reported performance info-malion lo de:armine whether i ‘was val, acourata and complete, 16. [did not ralze any material findings on the usefulness and reliability ot te reported Performance infarmalion far Ihe fallonng davalag-men pris: “+ Devalopment privy 1: tgisnal planing end eoorome doveloprr ent “+ Development privity 2: hash ane covil developmart “+ Development privity 3: public safety Addifional matters 1¢ Although | didnot raised material incings on the usefuness and eliailty ofthe epored perfor ance informatio forthe selected develoament priories | draw stiention fa the folowing matte: Achievemen: of planned fargels Refer te the annusl performance report on pages xx ta 2% for information on the achisvemont af planned targets for the year Unaudited supplementary information 18. The aunplenontary ‘formation set out on pages x to x does not form part of the annual performance report and is presenied ae additional infarmation We have nal auelted these schadulas ard, accandingly, we do not cxpross a conclusion anit Compliance with legislation 410. | performed pracedures to cbta'n evidence that the rmuicipalty had complied with applicable legsletion regarding financial matters, husncial maragemenl and allot rolaied mellers. My maloral finding an varipliance with saecific matters in key legislation. a8 set ott in the general notice issued in terms ot the PAA, are as ‘olloxs Annual financial statements 20. The finarciai stalernents submitted for sveiting were nol prepared in al -naterot respec in scixrdance will ha equicamenis of section ”22 of the Municipal Finance Management Act. Material misstatements of current assets, surentlisbities arc disslesure tems idertiied hy the auditors inthe submilled franca slalervanis were Subsequently ca-racted, reculing inthe financial ctaiernents “eceiving an unqualified audit pion, Procurement and contract management 21. Gantracts were awarded lo bidders haste an pints given fa: eilaia tal dill! fm, ‘rows shpulaloa inthe eriginal invitation for siding, in contravervion of SCM Ragulations 2b) and 28/1 Ka), Intemal control 22. considered internal control relevant to my aud tof the tinancial statements, aanusl perfornsncs report and compliance with lagislaion The mallars reparled below are Timited tothe signfieant inlernat control deficioncies that vesuited i the findings or comaliance with legielation, included in this report Leadership 23, The accounting aticer did nct pertorm oversight respansitilly over irancialrepeting adequately, resuting in malarial acjuslments raquired on i financial slalemante and ‘SCM legislation. Financial and performance management 24, The finarclal elatoments proparation and rev.ew prooesees were inadequate in certain instances, resulting n material adjustments lo Ihe nancial sislemanls. Ihe zoryplisnca wih SCM ragu‘alions is rel monitored by snior managamren: ragularly s0 fat non ‘compliance can bo addiacsed timeoushy Johannesburg 20 November 2016 sucktag on eae ena