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Report of the auditor-general to the Northern Cape Provincial Legislature and the council on Frances Baard District Municipality Report on the financial statements Introductlan 1. [have audited the financial statements of the Franoes Bard Districl Municipality set out fon pages X io X, which comprise the slalement of financial position as at $0 June 2016, the statoment of nancial perlormance, statement of changes in net assets, cash flow slalement and the statement of comparison of tudget information with actual information‘or the year then ended, as well as the notes, cormarising a summary of significant accounting policies and ather explenatory information, Accounting officer's responsibility for the financial statements 2. The accountng officer is responsible forthe preparation and fair presentation of these financial statements in accordance with South African Standards of Generally Racagnised Accounting Practice (SA standards of GRAP) anc the requirernents af the ‘Municipal Finance Management Aet of South Africa, 2003 (Acl Na. 86 ot 2003) (MFMA) and the Division of Revenuo Act of Scuth Alrica, 2078 (Act No. 1 af 2016} (DORA), and for such intemal contrl gs the accounting officer doturmines is necessary ta enable the preparation of financial stalemonis that ars free from material misstatement, whether due to rau or error, Auditor-general's responsibility 3. My responsiblity is o express an osinion on these financial statements based on my <ul, | conducted my auaitin accordance with International Standards on Audling ‘Those standards require that | cormply wih ethical requirements, and plan and perform ‘he audit to iain reasonable assurance about whether the finial stataments are {feo from malerisl misstatement. 4. An audit involves performing procedures to obtain ausit evidence about the amounts ‘and disclosures inthe financial statements. The procedures selected depend on tha aucitor's judgement, including the assessment of the risks of malavial misstetement of the financial statements, whether due to fraud or errr. In making those risk sesesaments, the auditor considers intemal contol relavant ta the entity's preparation and fair presentation of the financial stalaments in order to design aucit procedures thet are appropriate inthe circumstances, but rot for the purpose of expressing an opinion tn the effectiveness of the entity's intemal control. An aucit a'sa includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management as financial statements, oll as evaluating the overall prasenialion of the 5. [oeliova that the audit evidence | have oblained is sufficient and approgriale to provide ‘a basis for my aucil opinion. Opinion 8, In my opinion, the financial statements present fai, inal material respects, the financial postion of the Franoes Beard District Municipality as at 30 June 2016 and ts Financial performance and cash flows for the year then ended, in accordance with SA standards of GRAP and the reauiremonts of the MERA ane DORA, Emphasis of matier 7. I draw attention fo the matler below: My opinion is nat (edad in respect ofthis matter. regular expenditure 8. As disclosed in note 35.3 to the fancial slalements, the municipality incurred irraguar expenditure of R329 050 during the year uncer review mainly due to nen-complianos with supply chain management requirements, The total amount of iregular expenditure Fecorded in the annual financial staternonts at 30 June 2018 amount to R329 060. In ‘addition, the full extent of regular expenditure is stil in the process of being alornined, Additional matters 8. [draw altention tothe matters below. My opinian is not modified in respect of theve maiters, Unaudited supplementary schedules 10. ‘The supplementary infomation set out on pages X to X does not form part ot the financial statements and is presented as addilianal information. | have not audited these schedules and, accordingly, Ido not express an opinion thereon, Unaudited disclosure notes 11. In laims of section 126(2)(0} of the MFRIA the municipality is required to disclose Particulars of non-compliance with the MFMIA. This disclosure requirement ald no farm part of the audit ofthe financial statements an accardingly | do nat express an opinion thereon, Report on other legal and regulatory requirements 42. In accordance with the Public Audit Act of South Attica, 2004 (Act No. 28 of 2004) and the general notice issued In terms Ihereof, | have a responsibly to repo findings an the reportad perlormance information against predetermined objectives ot selected development priorities prosented in the ennual performance repert, comaliance with legislation and internal control, The objective of miy lasts was to identify reportable findings as described under each subheading but not o gather evidence to express assurance on these matters. Accordingly, ! do not exprass an opinion or conelusion an these matters, determined oblectives 13. | performed procedures to obtain evidence about the usefulness and reliability of the reported performance information of the folowing selected development priorities presented in the annual perfornance report of the municipality for the year endes 30 June 2016: » Development priority 1; Sustainable Municipal Infrastructure Development ang Basic Services Dalivery an pages X to X ‘+ Development priority 3: Municipal Institutional Development and Transformation on pages K to X 14. | evaluated the usefulness of the reported performance information to determine ‘whether itwas consistent wilh the planned development prioritise. [further performed tesis fo delermine whether indicators and targets were well cefined, verfiable. specific, ‘measurable, time bound and relevant, as required by the National Traasury’s Framework for managing programme erformanes infermstion (FNPPI} | assessed the rliabilty ofthe reported performance informatian ta determine whether it was valid, accurate and complete. 16. I did not identity any materiel findings on the usefuiness and reliability of the reported parformanee information for the following development prottes: + Development privily 1: Sustainsble Municipal Infrastuctura Davelepment and Basic Serves Delivery ‘+ Development priority 3: Municipal Institutional Development and Transfarmaten. Ad ional matter 17, Although | identified no material findings on the usefulness ang reliability ofthe reported performance information forthe selected development priors, | draw attention to the following matter: Achievement of planned targels 18. Refer fo the annual performance report on pages X to X: K to X for information on the achievement of the planned targets for the yaar. Compliance with legislation 18. | performed procedures to obtain evidence that the municipally had complied with apnlicabie legislation regarding financial mallrs,financiel management and other related matters. | did nal identily any instances of material non-compliance with specific mailers in key legislation, as set out inthe general notice issued in terms of the PAA. Intern ‘ontrol 20. | oonsi¢ered internal control relevant te my aus of the financial statements, the annusl performance reccrt and comalance with legislaton. | did not identify any significant deficiencies in intemal contral Kimberley 30 November 2018