Table Of Content

Report of the auditor-general to the Northern Cape 1 legislature and the council on ZF ict municipality Report on the financial statements Introduction 4. Ihave audited the financial statements of the ZF Mgoawu district municipality set out fon pages 17 to 03, which comprise the statement of financial postion as st 130 June 2015, the statement of fnandal performance, stalemeni of changes in net ‘assets, cash flow slatemenl and the statement of comparison of budget information ‘with actual information far the year than ended, 2s well as the notee, comprising a summary of significant accounting palicias and other explanatory Informaton. Accounting officer's responsibiltty for the financial statements 2. The accounting officers responsible forthe preparation and faic presentation of these financial stalamenis in acoordance wth South African Standerde of Generally Recognised Accounting Practice (SA stendards of GRAP) and lha requirements of the Municipal Finanoe Managemant Act of South Afica, 2005 (Act No, 86 of 2003} (NIFMA) end the Division af Revenue Act of Soulh Aiea, 2074 (Act No, 10 of 2014) (DeRA}, andor such internal conirol as the acoaunting officer determines is hecessary to enable the preparation of financial statements that are ree from material misetelement, whether due to feud or arer. Auditor-general's responsibility 3, My raspanebilly is to express an opinion on these financial statements laced on my aud Teanducted my aucit in accordance with Intemationsl Standards on Auditing ‘Those standards require that | comply with etbleal requirements, and plan ancl perform the audit obtain reesonable assurance about whethar Ihe fancial Statements are free from material misstatement, 4. An ausit involves performing praceduree to abtsin aut evidence about the amounts ‘ard dlectoguras in the financial statements. The procedures selacied depend on the uditor's judgement, inluding the assessment ofthe risks of material misstatement of the financial stalaments, whether dus to freud ar error. In making those risk ‘assesémants, the auctor Considers internal contol relevent to the municipality's preparation and fair presoniatian ofthe finandial siatemants in order to design aux procedures that are appropriate in the dircumslanoes, but not forthe purpose of ‘expraselng an opinion on the effectiveness of the municipality’ internal contra. An aust also includes evalusting the appropriateness of accounting policies used and the reasonablenass of accounting estimates meda by managertont, a6 well 25 cevalvaling the overall presentation of the financial statements, 5, believe that the audit avidenea | have obtained is sufficient and appropriate to provide a basis lor my auait opinion Opinion 6. Inmy opinion, the tinancial statements present fail, in all material respects, the Ananelat pasion af the ZF Mgcawu dlstret munlelpally as at 20 June 2018 and ts financial performance and cash flows for he year then ended, in accordance with SA standards of GRAP and the requirements of the MEMA, and DoRA. Emphasis of matters 7. [draw allontion lo tha maltars below. My opinian is not madiied I respect af these matiers Going concern 4, Nole 16 to the financial statements indicates that the municipality incured = net loss OF R 8 254 145 during the yaat endad 80 June 2018 and, a8 of that date, tha Tmunicipalty'scurent labities exceeded ta curent ausetsby R11 953 005, These Condtions, alongwith other melts ae eet forth in note 47, indicate the existence of a material unoartanty that may east significant doubt en the municipality's ably 10 ‘Speraieas a going concern Addificnall matters 8, drew attention to the matiors below. My opinion #8 not modified in reepect of these atlas. Unaudited supplementary schedules 10. The supplamentary Information sst out on pages 94 ta 108 does not form part of tha financial stefements and is presented as acidtional information. | have not audited these schedules and, sccordingly, | do nct express an opinion iherson. Unaudited disclosure notes “411. In forms of eaction 125(2)(6) ofthe MFMA the municipality requirad to disclose particulars of non-compliance with the MFMA. This disclosure requirement did not form part ofthe aucit of the financial statements and accordingly do not express an opinion thereon. Report on other legal and regulatory requirements 42. In accordance with the Pubic Audit Act of South Africa, 2004 (Act No. 26 of 2004) (PAA) and the general notioe issued in terms thereot, Ihave @ responsibil to report Findings on the reported performance infermelion agsinsl pradelarmined objectives for selected development priorities’ objectives presented in the anrwal performance report, compliance with legislation and intemal contral. The objective of my teste was ta identty reportable findings ae described under each subheading, but net to gethar viene to express assurance on these matters. Accerdingly, Ido nat express an pinion ar conclusion on these matters, Predetermined objectives 13. | performed procedures to obtain evidence about the useftiness and reliability of the reported performance information fr Ih lollowing selected objectives presented in the annual perfornance report af the municipality for the year ended 30 June 20'S: “+ Stratego abjactive 1: Ta manltor and datarmine the housing backlogs in the dist _as well as t Inform te public on housing information on pages 68. “+ Strategle objectlve 2: To assess and provide targeted support improving institutional ‘apacily and service delivery capebittie of category B-municnslties on pages 58 to 86. ‘© Stratogle objective 3: Ta promote envronmantal heath and safety of communities in ‘he Siyanda District through the proactive prevention, nittgation, identification and management of environmental heslth services, fro and disaster deks on pages 69. + Sirutegic objective 4: To promote safety of communties In tha Siyanda District through the prosctive prevention, mitigation, Henification and management of fre ‘and disaster risks on pages 70. » Strategic objective &: To ensure efficient business operations andto tulflthe assurance statutory requirements of the ZFM distcl municipality on pagas 31 14 evaluated the reported performance information against the overall criferia of usefulness end reliably. 16. l evaluated the usefulness of the reported perfermance information to determine ‘whether il was presented in accordance withthe National Treasury's annual reporting Principles end whether tha reported perionnance was consistent wlth the planned ‘objectives. | further performed tests fo delermine whether indiostors and targels were ‘well defined, verifiable, speafio, measurable, time bound end relevent, as requled by the National Treasury's Framework for managing programme performance Information (FMP), 16. | assessed the reliability of the reported performancs information te determine whether itwas valle, accurate and complete. 17. | did not identfy material findings on the usefulness and reliability ofthe reported Rerformance information for the following objectives: ‘+ Strategle objective 1: Ta manitor and determine the hausing backlogs in the district ‘a8 well 2¢%0 inform the public on housing information on pages a8. + Strategic objective 2: To assess and provide targeted support improving institutional capacity and service delivery capabilities of calagory B-munelpallies on pages 58 to 66. + Strategle ebjective 2: To promote environmental heath and safely of communities in the Siyanda Disbict through the proactive prevention, mitigation, klenification and management of environmental health services, fre and dleaebar rsks on pages &8, “+ Strategie objective 4:To promote safety of cornmunilios inthe Siyanda Disteet through the proactive prevention, mitigation, dentificalion and management of firs ‘and disaster risks on pages 70. + Strategie objective &: To ensure afficisnt businase operations ant to full the ‘assurance statutory requiraments of the 2PM distict municipallty on pages 31, Additional matters 4, Although | identified no matedal findings on the usefuinese and reliability of the "aported performance information for the selected objectives, I draw aligntion fo tha following matars: Achievement of planned targets 18, Refer ta the annul performance report an pages 20 ta 74 for information on the achievement of the planned targets for he year Unaudited supplementary schedules 20, The sunplementary information set out on pages 01 to 19:does not form par! oF the ‘annual performance report and is presented ae addtional information. Ihave not audited these echedules and, accordingly, Ida not report theraon. Compliance with legislation 2, I performed procedurss ta obtain ovdence that the municipatiy had complied with applicable legislation regarding financial malter, manda management and other ‘lated matters. | did nol identify any instances of material not-compliane with Specitio matters in key legislation, 28 se4 out in the general nolca issued In tenms of tha PAA, Internal control 22,1 didnot Identity any significant deficiencias In intemal contr. Lluis Genetas Kimberiey 30 November 2015